Understanding Unallotment: Definition, Examples, and Purpose

Unallotment refers to the process of reversing or cancelling an allotment that has already been made. In other words, it is the act of taking back or withdrawing a previously allocated resource or fund.

For example, if a company has allotted a certain amount of funds for a project and later decides to cancel the project, the process of reversing the allotment and recovering the funds is called unallotment. Similarly, if a government agency has allotted funds for a specific purpose and later decides to reallocate those funds to another purpose, the process of taking back the funds is also called unallotment.

In summary, unallotment is the process of reversing or cancelling an allotment that has already been made, and it is often used in financial and budgetary contexts.