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. Zero-Based Budgeting - ZBB

    A method of budgeting in which all expenses must be justified ...
  4. Municipal Bond

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

    Defined by the International Project Finance Association (IPFA) ...
  6. Capital Budgeting

    The process in which a business determines whether projects such ...
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. 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. Investing Basics

    What is the difference between macroeconomics and finance?

    Dive into the world of economics by learning the key differences between macroeconomics and finance. These ideas help investors make good choices.
  8. Economics

    How successful is fiscal policy in guiding the national economy?

    See why it is difficult to evaluate the impact of fiscal policy on the national economy and how fiscal tools have failed to live up to expectations.
  9. Fundamental Analysis

    What is the difference between profitability and profit?

    Calculating company profit and profitability are not one and the same, and investors should understand the difference between the two terms.
  10. Economics

    What do Keynes and Freidman have to do with fiscal and monetary policy?

    Find out how John Maynard Keynes and Milton Friedman influenced how modern economists and analysts think about fiscal and monetary policy.

You May Also Like

Hot Definitions
  1. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
  2. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
  3. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
  4. Federal Funds Rate

    The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution ...
  5. Fixed Asset

    A long-term tangible piece of property that a firm owns and uses in the production of its income and is not expected to be ...
  6. Break-Even Analysis

    An analysis to determine the point at which revenue received equals the costs associated with receiving the revenue. Break-even ...
Trading Center