Underspend

(redirected from underspends)
Also found in: Dictionary, Thesaurus.

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 authority's capital balance also saw a total underspend of PS1.224m which was linked to the "release of provision set aside in respect of equal pay".
A report adds: "The success of our financial planning and management during the year has resulted in a PS0.5m underspend despite significant cost pressures and a continuation of the reductions in government funding.
"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.
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."
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.
Then Finance Minister Angus MacKay promised better housekeeping would ensure a major reduction in the 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.
THE NHS will underspend by a record pounds 1.8bn in 2007/08, it was reported today.
In the new allocation, education gets an extra pounds 15.4 million and health pounds 15.6million on top of their underspends.
"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.