This is similar to how some government agencies retain their budgets.
At the end of the budget period they've only spent 80% of their allocated budget, so they throw out a bunch of perfectly good equipment/furniture/etc. and order new stuff so that their budget doesn't get cut the following year, rather than accepting that maybe they were over-budgeted to begin with.
Rinse, repeat, thus continuing the cycle of wasting X% of the budget every year.
At the end of the budget period they've only spent 80% of their allocated budget, so they throw out a bunch of perfectly good equipment/furniture/etc. and order new stuff so that their budget doesn't get cut the following year, rather than accepting that maybe they were over-budgeted to begin with.
Rinse, repeat, thus continuing the cycle of wasting X% of the budget every year.