spending caps

Spending caps are limits set on how much money can be allocated or spent within a specific budget, program, or fiscal period. They help ensure that expenditures do not exceed available resources, promoting financial discipline and accountability. These caps can be established by governments, organizations, or departments to control costs, prioritize spending, and avoid overspending. When the spending cap is reached, no additional funds can be spent without adjustments or approvals, helping maintain fiscal stability and adherence to budget plans.