The official business definition of a budget overrun is when a company or organization spends more money than was originally allocated for a particular project or activity. This can happen for a variety of reasons, including unexpected costs, underestimating the cost of a project, or not having enough funds available to cover the full cost of the project. Budget overruns can have a significant impact on a company’s bottom line, as they can lead to increased debt, decreased profits, and a decrease in overall financial stability. To avoid budget overruns, it is important for companies to carefully plan and budget for their projects, as well as to monitor their spending closely to ensure that they stay within their allocated budget.