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 ?
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.
Mr Brown told The Journal it was his understanding that the underspend from this year would not be at risk.
Mr Blackie said: "The last thing we want to hear is that there is an underspend on transport, because we know how vital that is to the region.
However, the NH scheme underspend is a concern and this will be a part of a wider review undertaken by the TBA National Hunt Committee during 2007.
9 million underspend, mainly from savings on employees and external placements.
THE Scottish Executive were accused of "incompetence and mis-management" last night after it emerged that they were heading for a pounds 600million Budget underspend.
She dismissed Plaid criticism over underspends, saying the need to tackle the problem was the key theme of her budget.
This is good news to be able to use reserves and underspends in government priority areas, " she added.
Underspends of PS674,000 in adult services and other savings mean the overspends will not hit reserves.
Parliament does not approve of large NHS underspends as it commits those resources for health spending, not to just sit there.
But it is more important to use the money wisely and ensure that accounting procedures are put in place so that such underspends do not happen again.
THE Scottish Executive have been accused of "mismanagement and incompetence" after revealing a massive pounds 718million underspend.