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Underspend
(redirected from underspends)

   Also found in: Dictionary/thesaurus 0.01 sec.
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.


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Parliament does not approve of large NHS underspends as it commits those resources for health spending, not to just sit there.
The underspends, reflecting as they do a lower number than forecast of British-bred winners, are a matter for concern and the Board will be keeping the efficacy of the scheme under continuing review.
Mr Reid said: "Our discussions with officers indicate the underspends are intentional, used to secure financial balance rather than from inadequate budgets.
 
 
 
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