Annual budget exceeded by &2 for document item &1

What causes this issue?

The annual budget is exceeded by &V2& for the document item &V1&. Budget
control on outgoing amounts (<DS:DE.BUAVC_CEILTYPE>ceiling type</>
<ZK>Expenditures</>) raised this message for the following combination
of availability control ledger, fiscal year (and if applicable,
<DS:DE.FM_CEFFYEAR_BCS>year of cash effectivity</>) and control object:
<ZH>&V3&</><ZH>&V4&</>
DEFINE &N& = '005'
INCLUDE FMAVC_ANNUAL_MESSAGE_EXT

System Response

The system issues an error message and will not allow you to continue with this transaction until the error is resolved.

How to fix this error?

Procedure for System Administrators

Error message extract from SAP system. Copyright SAP SE.