Underspend


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Underspend

To spend less than one was allotted in a budget. Underspending in personal finance is almost always a good thing as it allows one to save more or to pay down debts. In corporations, however, underspending can be negative; for example, if a department does not spend its entire budget, the executives may conclude that it does not need such a high budget and cut that department's allotment. This creates a perverse incentive for departments and other subdivisions to spend their entire budget whether or not they need to.
References in periodicals archive ?
But David O'Connor of the Association of Scottish Police Superintendents said: "An overtime underspend is not unusual at this time of year.
The head of the government department responsible for promoting British business abroad asked officials to think of ways to spend up to Au1 million to avoid a budget underspend, it has been reported.
Sir Andrew Cahn, until this week head of UK Trade & Investment (UKTI) which promotes British businesses abroad, told senior colleagues that the Foreign Office was "heading for an underspend and wants to get money out of the door".
While this improvement is largely due to additional funding received from the Assembly Government to meet the cost of swine flu and the additional external audit fees, there was also an underspend within the month.
All quite absurd, of course, and those who implement the current policy have only themselves to blame for the underspend.
In relation to last year's underspend, the figure includes disruption to the service caused by the flooding in December 2015, as staff were diverted to restore bridges, roads and drainage systems affected by the flooding.
Escudero pointed out that if the Aquino administration can afford to underspend by P623 billion in the last four years, it will not miss the loss of P30 billion that will result from the tax reform bill.
A Scottish Government spokesman said: "The financial performance reported in the accounts demonstrates the effective stewardship of resources by the Scottish Government in again limiting underspend to around one per cent of the Scottish Government's budget.
MILLIONS of pounds of PSNI cash being handed back due to an underspend would build and run two stations, the officers' body said yesterday.
The report describes an underspend of more than PS1m and an increase in the council's general balances which brings reserves to more than PS6m.
5m for the 2012/2013 financial year and, although some operational budgets were overspent, overall the force forecasts a PS300,000 underspend.
A FLAGSHIP scheme to help the poorest households in England make their homes warmer and cut energy bills is set for a pounds 30 million underspend - according to Consumer Focus and National Energy Action.