Earlier quoted context omitted.
One hears stories about researchers with unspent grant money scrambling madly to find something, anything, to spend it on before the grant expires. Use it or lose it. My Dad told me how back in the 1970s he worked at a government-funded research lab. One time they called up a laboratory glassware supplier and said "We'd like to order $10,000 worth of glassware". The supplier asked "Sure, what specifically would you l…
It sounds like there is a missing incentive to go under budget. There's something wrong with the system if people feel like they just have to burn money.
Other way around. Right now there exists a negative incentive to go under budget, being that if you need extra budget next year you suddenly don't have a buffer.
The correct way to fix things is to simultaneously prohibiting end-of-FY budget-keeping purchases (e.g. by mandatory reviewing of purchases) while at the same time allocating a company/organization wide buffer for stuff that needs immediate / projected stuff that was not in the planned budget.