I'm currently a masters student and hoping to do a PhD upon finishing my masters.
I wanted to know what does a PhD proposal has to consist of and why is it needed?

Also I've been told by my university (academic department) that if I was to get a merit on my masters there would be a fee waiver, which would enable me to carry out a PhD while the university pays all the fees. If I was not to gain the required marks in my masters, but still wanted to do a PhD I'd have to get funding from elsewhere. I've been told there are research councils who provide funding on different areas of research.
Question is; who are these people and where do the funding come from?

Could anyone help
Soyful

It also depends where you are from and your nationality. There is a possibility of getting funding from charities as well depending on your subject.