Spending cap

A spending cap is a limit set on how much money can be spent within a particular budget, organization, or program over a specific period. It ensures expenses do not exceed available resources, promoting responsible financial management. For example, a government might set a cap on healthcare spending to prevent overspending, or a company might limit advertising expenses to stay within its financial plan. Spending caps help control costs, prioritize priorities, and maintain financial stability by preventing unchecked expenditures.