The Procurement Glossary » Budget Holder

Budget Holder

Finance & Payments

Definition

The person accountable for a budget and for authorising spend against it.

Explanation

The budget holder approves purchases that draw on their budget and answers for over- or under-spend. They are usually a key approver in the workflow, ensuring commitments align with plans and priorities.

Example

As budget holder, the marketing director approves all spend against the campaign budget.

Related terms

• Budget — A financial plan allocating expected spend across categories, departments or projects for a period.
• Cost Center — An organisational unit to which costs are assigned for tracking and accountability.
• Approval Workflow — The defined sequence of authorisations a requisition, order or invoice must pass through before it can proceed.
• Delegation of Authority (DOA) — The formal policy defining who can approve spend and up to what value, at each level of an organisation.

Frequently Asked Questions

What is Budget Holder?

The person accountable for a budget and for authorising spend against it. The budget holder approves purchases that draw on their budget and answers for over- or under-spend. They are usually a key approver in the workflow, ensuring commitments align with plans and priorities.

Can you give an example of Budget Holder?

As budget holder, the marketing director approves all spend against the campaign budget.

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