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 ?
This is a remarkable feat given the size of our budget and issues of underspending in the past.
Based on our latest assessment of actual outturns vis-a-vis program levels, underspending was reduced to P123.
She added that in the first seven months of 2015, underspending was already "colossal" at R190 billion.
We need to find out the causes of underspending because we allocate funds, the funds are earmarked for expenditures that should generate income, jobs and economic activity, but if it is not spent then there is a problem and so there is slower growth," she explained.
Robredo's staff blamed the underspending on several factors, like manpower shortage and technical requirements.
The administration can easily save P30 billion in its expenditures to make up for any loss from tax reform, as shown by its underspending in the last four years.
Underspending on capital programmes resulted in reduced borrowing by PS8.
The National Audit Office's (NAO) report found that the Department for Children, Schools and Families (DCSF) has built up the money after underspending on its Building Schools for the Future programme (BSF).
6 million, with a total net underspending of pounds 2 million.
But the underspending has been defended by Cleveland's Chief Constable Sean Price.