A spending limit, also known as a budget CAP, is the maximum amount of money that can be spent on something. The term is often used in business and personal finance to ensure that spending does not exceed a certain amount. The two crossword solutions for this term are CAP (3 letters) and LID (3 letters). CAP stands for 'Ceiling Amount Permitted' and LID stands for 'Limit on Expenditure'. Together, these two terms refer to the same concept: a spending limit.