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. Insurance

    Top 6 U.S. Government Financial Bailouts

    U.S. bailouts date all the way back to 1792. Learn how the biggest ones affected the economy.
  2. To finance the budget deficit, the US government may seek to raise money by taking on debt, often by borrowing from the public.
    Bonds & Fixed Income

    A Look At National Debt And Government Bonds

    Learn the functions of the U.S. Treasury, and find out how and why it issues debt.
  3. Entrepreneurship

    Run Your Finances Like A Business

    Think of yourself as your own little company. To make it run smoothly, you need to take a look at your books.
  4. Budgeting

    Current Account Deficits: Government Investment Or Irresponsibility?

    Deficit can be a sign of trouble for some countries, and of health for others. Find out what it means when more funds are exiting than entering a nation.
  5. Retirement

    Is The U.S. Government Too Big To Fail?

    Some think that the U.S. government is too big to fail, but one must only look at historical examples to know that it's not true.
  6. Retirement

    Navigating Government And Nonprofit Financial Statements

    Learn how to trace where your tax dollars and charitable donations are going.
  7. Delivery duty paid (DDP) is a shipping term.
    Investing

    What does DDP Mean?

    Delivery duty paid (DDP) is a shipping term specifying that the seller is responsible for all costs associated with delivery of the goods to the buyer. It is usually used when goods are exported ...
  8. Active Trading Fundamentals

    What is liquidity risk?

    Learn how to distinguish between the two broad types of financial liquidity risk: funding liquidity risk and market liquidity risk.
  9. Technical Indicators

    What is a good gearing ratio?

    Understand the meaning of the gearing ratio, how it is calculated, the definition of high and low gearing, and how they reflect relative financial stability.
  10. Fundamental Analysis

    What is a good interest coverage ratio?

    Learn the importance of the interest coverage ratio, one of the primary debt ratios analysts use to evaluate a company's financial health.

You May Also Like

Hot Definitions
  1. Commodity

    1. A basic good used in commerce that is interchangeable with other commodities of the same type. Commodities are most often ...
  2. Deferred Revenue

    Advance payments or unearned revenue, recorded on the recipient's balance sheet as a liability, until the services have been ...
  3. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at least one country other than its home country. Such companies ...
  4. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
  5. Simple Interest

    A quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the interest rate ...
  6. Special Administrative Region - SAR

    Unique geographical areas with a high degree of autonomy set up by the People's Republic of China. The Special Administrative ...
Trading Center