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 ?
The non-approval of the 2019 budget bill forced the government to operate on a reenacted 2018 budget for the entire first quarter, resulting in underspending equivalent to P80 billion to 90 billion in disbursements for the first quarter of 2019.
In fact, we are slightly overspending." The DBM said underspending is defined as "the difference of programmed disbursements from actual disbursements.
"I'm very happy to note that Congress is going to call a hearing on what is perceived as underspending, because we would like to inform Congress and the public that the bad old days of underspending, which the critics faulted the government for moving too slowly in getting the projects done, are now over," said Dominguez.
Mr Swinney also told MSPs that money accumulated on Scotland's behalf at the Treasury from past underspending had fallen from around pounds 950million to pounds 670million.
'The allegation by some congressmen that this administration is underspending is totally false,' he said.
Loren Legarda, chairwoman of the Senate finance committee, expressed Tuesday hopes that the shift from obligation-based to annual cash-based appropriations starting with the proposed 2019 P3.357 trillion General Appropriations Act (GAA or national budget) would result in improved delivery of basic services to the people and address underspending.
In a statement, Finance Secretary Carlos Dominguez said the government's lower-than-programmed deficit in the first trimester was not due to underspending, but rather due to higher-than-target revenue collections.
FIRE services in Kirklees and surrounding districts have largely survived cuts in Government grants through underspending and prudent savings, says West Yorkshire Fire & Rescue Authority.
Summary: Vice President gives President Aquino low marks for 'underspending'; highlights his experience as local executive
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).