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vv65
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I reject E beccause:

(E) increases expected to be approved in wages from negotiating
the meaning comes out to be wrong: increase is not from negotiating but increase needs to be approved.
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RaviChandra
At the beginning of the year, the city allocated $150 million to cover the increase in wages that it expected to approve as a result of negotiations with the municipal labor unions.

(A) increase in wages that it expected to approve as a result of negotiations
(B) increased wages it expected to approve from negotiations
(C) increasing wages expected to be approved as a result of negotiating
(D) negotiated increases in wages it expected to approve
(E) increases expected to be approved in wages from negotiating

B changes the meaning of the original sentence and "increased" is incorrectly applied to wages since it hasn't happened but is happening.

C incorrectly uses "increasing wages", which means something that will continue to happen. This is a singular increase.

D changes the meaning completely and logically doesn't make sense

E same issue as D

A correctly uses "increase in wages". It maintains parallelism between "At the beginning of the year, the city allocated" and "that it expected", which can be transcribed to "At the beginning of the year, the city expected"
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At the beginning of the year, the city allocated $150 million to cover the increase in wages that it expected to approve as a result of negotiations with the municipal labor unions.

Option Elimination -

(A) increase in wages that it expected to approve as a result of negotiations - the right cause-effect relationship. Cause "negotiations" and effect "the increase."
(B) increased wages it expected to approve from negotiations - "increased wages" means that wages already increased but the intended meaning is that they'll increase as a result of negotiations. "from negotiations" is wrong.
(C) increasing wages expected to be approved as a result of negotiating - "increasing wages" means as if the wages are already increasing, but the intended meaning is that they'll increase after negotiations.
(D) negotiated increases in wages it expected to approve - "negotiated increases" means the increases are already negotiated and not the intended meaning, that is, the increase after the negotiations. Moreover, "the increases" means that there are multiple increases.
(E) increases expected to be approved in wages from negotiating - a total mess. "increases"? To be approved? Passive? By whom? From negotiating?
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