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 ?
One of the biggest areas of underspending was the iConn project, a multi-year project to install a college-wide administrative information system.
He said: 'Only then can we be confident that any underspending represents real improvement.
But she insisted the underspending would not lead to a budget cut next year.
In addition, 59 percent of respondents reported underspending against their full-year budgets through the end of September.
Much the same is said most years by the passenger transport authority Centro, a serial offender when it comes to underspending.
BOSSES of Coventry Primary Care Trust will examine how it manages its finances after underspending by almost pounds 200,000 in the past 12 months.
and PNC Bank, found that most enterprises do not have adequate CRM business plans in place and are severely underspending on their CRM projects.
The figures revealed underspending totalling more than pounds 500 million last year, and almost pounds 375 million the year before.
He accused the council of underspending Government cash allocation for road repairs year on year since 1990.