Blanket appropriation

A blanket appropriation is a set-aside of funds for which there is no specification for how the funds are to be used. A manager receiving a blanket appropriation can spend the funds at his or her own discretion. The blanket appropriation concept is mostly confined to government spending. Its use should be restricted or at least tightly monitored, since there is a risk that funds allocated in this manner will be improperly used.

As an example of a blanket appropriation, a state government sets aside $50 million that is targeted at overhauling aged bridges, without specifying which bridges are to be targeted.

Related Courses

Governmental Accounting