In many companies, there’s this policy which requires awarded budget that must be spent completely once it’s approved. If the annual spend is below the allocated annual amount, there’s a chance next FY you won’t get the requested budget you asked for.
– why do such policy exist?
Isn’t it better to carry over unused expenses to the next FY? Saving expenses expenditure is a bad thing? Such a policy encourages employees to spend extravagantly the remainder amount nearer to FY-end.
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This was a big problem working (as a civilian) for the military. Budgets literally required acts of Congress to change and the massive amount of departments allocated to each of them were so far outside of my control. It could theoretically be done a thousand times more efficiently but that would require a whole bunch more micro research and management that ends up being considered more trouble than it’s worth.
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