Viewing a single comment thread. View all comments

Ratnix t1_j2dkx1r wrote

Reply to comment by PuzzleMeDo in ELI5: Why do companies require annual budget be spent 100%? by angrybird7677

>Budget is power and status; there's no reward for returning unspent money to the company.

It's not just that. We do electroplating where i work. Stuff doesn't need to be replaced on a yearly basis. And when it does need replaced, it can be very costly, especially when one thing breaks and causes other things to break. And if that budget isn't allocated to that department, it can be a very bad time until the next budget comes out. So, spending money at the end of the fiscal year, in order to use up the entire budget, on stuff that just isn't needed, can be the difference between actually getting something replaced instead of slapping some duct tape on it and hoping it'll last until the next budget.

7

Fmatosqg t1_j2ev9yc wrote

And that's because spending the money in short delay when the necessity arises is too complex and suspicious for the CFO to approve it.

Which is not that complicated when you're working in a small shop and the owner actually understands what the equipment is for.

2