It’s not so much a set in stone requirement, as much as a practical reality of budgeting. If the business owner sees one department consistently not spending their full budget, they think that department doesn’t need that budget.
Now in large corporations the ones making those decisions are disconnected from actual operations, so they don’t know the broader context of why that budget wasn’t used
sass-pancake t1_j2ddex7 wrote
Reply to ELI5: Why do companies require annual budget be spent 100%? by angrybird7677
It’s not so much a set in stone requirement, as much as a practical reality of budgeting. If the business owner sees one department consistently not spending their full budget, they think that department doesn’t need that budget.
Now in large corporations the ones making those decisions are disconnected from actual operations, so they don’t know the broader context of why that budget wasn’t used
Tl;Dr: assholes with business degrees