It is general knowledge that Agencies/Institutes spend down their annual budgets at the end of the fiscal year in order to receive the same or higher budget for the following fiscal year. This method of spending is in many cases very wasteful. Agencies/institutes should request budgets for a new fiscal year based on their needs not based on their previous years budget.
End of the year overflow should be used to:
(1) pay back what the government has borrowed from countries
(2) put into social security/medicare funds
(3) saved in an escrow account for emergency uses