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 work in a certain sector with both medical and marketing budgets. The curtain was parted a few years back that if they didn’t spend the budget, they lost it that year and it was dropped by 20% the following year also. Some crazy shit happens come year end.
GREAT FOR ME
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