Rejected of Material request-budget

I have created a budget for a project with the following Accounts:

When i create a material request with an amount of 12000 MUR (greater than budgeted) using the account hardware,i could not reject the Material Request.the status does not change to rejected.

below is my set up for the workflow approval:

Please advise why status does not change from draft to rejected when the budget (10000 MUR)exceed the amount on Material Request(12000MUR).

This is because docstatus = 1 means that the material request has been submitted. Submission is what the budget control action is preventing. Instead, try changing the doc status for Rejected as 0 and check.