Blanket Appropriation

AAA

DEFINITION of 'Blanket Appropriation'

Expenditures that are authorized on a blanket basis, without specifying individual projects. Blanket appropriation is used in connection with government-level finances. An example of blanket appropriation may be an amount of $10 million earmarked to upgrade major highways in a state, with the actual amount to be spent per highway not specified. Blanket appropriations may need to monitored closely to ensure that there is no misuse of funds, and that the allocated funds are being spent only for authorized purposes.

INVESTOPEDIA EXPLAINS 'Blanket Appropriation'

Blanket appropriations are also used in the private sector for smaller projects with lower capital outlays. Such projects may be delegated to middle management for speedy action. The main advantage of blanket appropriation is that it reduces the time lag between proposal and implementation, since project approval is not required on a case-by-case basis.

RELATED TERMS
  1. Budget Manual

    A set of instructions used within large organizations to prepare ...
  2. Austerity

    A state of reduced spending and increased frugality in the financial ...
  3. Municipal Bond

    A debt security issued by a state, municipality or county to ...
  4. Project Finance

    Defined by the International Project Finance Association (IPFA) ...
  5. Blanket Mortgage

    A mortgage which covers two or more pieces of real estate. The ...
  6. Balanced Budget

    A situation in financial planning or the budgeting process where ...
Related Articles
  1. Top 6 U.S. Government Financial Bailouts
    Insurance

    Top 6 U.S. Government Financial Bailouts

  2. A Look At National Debt And Government ...
    Bonds & Fixed Income

    A Look At National Debt And Government ...

  3. Run Your Finances Like A Business
    Entrepreneurship

    Run Your Finances Like A Business

  4. Current Account Deficits: Government ...
    Budgeting

    Current Account Deficits: Government ...

comments powered by Disqus
Hot Definitions
  1. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  2. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  3. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  4. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  5. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  6. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
Trading Center