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And managers had planned a further underspend of around £1bn in 2010-11.
So at the beginning of this financial year it had a cumulative underspend of over £5.5bn.
There are now 10,500 fewer defence jobs than a decade ago, and between 2002 and 2008, there was an "underspend" of £5.8m on defence in Scotland, comparing tax take to spending.
Leicestershire County Council, which is proposing a number of cuts, has projected an underspend of £13m.
The county cabinet is due to meet on 23 July to agree how to use the projected underspend of £13m.
Savings made downsizing Thames Valley Police have resulted in a projected underspend of £5.3m according to a new report by the police authority.
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Earlier this month Ofwat accused Thames of "underspend" on sewer flooding, failing to invest in new sewage treatment and not maintaining its waste water network.
The result is not only anger on the part of the councils, but also a severe underspending of the budget in most provinces.
Trump even told Merkel Germany was to blame for the underspending of other countries: "Continued German underspending on defense undermines the security of the alliance and provides validation for other allies that also do not plan to meet their military spending commitments, because others see you as a role model".
Yet, during the past decade, there have been problems with underspending of allocated budget, reallocation of funds and off-budget expenditure.
Last year the transport department crowed that it could cut £23m from its budget as a result of an "underspend on the Cycle Cities Ambition budget".
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