Discretionary Budget

True Tamplin

Written by True Tamplin, BSc, CEPF®
Updated on August 27, 2021


A discretionary budget is an unspecified lump sum which states what it is for, what the maximum sum overall is to be and possibly specifies also a maximum sum per item.
Discretionary budgeting is useful in situations where expenditure for each item is of small value. The administrative cost of dealing with each item far outweighs the control benefit available. But control is maintained within the lump-sum budget.

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