You got that right. Often there are policies that reinforce this tendency as well - for example, if you don't spend ALL of your grant money, next time around, the granting agency (government OR private) will give you less. So anything leftover at the end of the cycle is wasted in order to keep the gravy flowing strong.
The "spend every last dime" mentality is also true for the personal finances of many...fortunately (sometimes I think 'unfortunately') we live in countries where waste is not particularly painful.