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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I worked for the US government my entire career, and this always drove me batshit. My budget was a “mandatory spend”, whether useful or not. We’d buy promotional giveaways just to spend the money. Think about that…a federal agency buying can cozies because if we didn’t spend the money allocated to us, we’d get a smaller budget the following year. It just seems to encourage fraud, waste, and abuse.
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