What is a General Fund?

A general fund is the primary fund used by a government entity. This fund is used to record all resource inflows and outflows that are not associated with special-purpose funds. The money flowing into a general fund is usually derived from a variety of taxes, such as income taxes, sales taxes, use taxes, and lodging taxes (depending on the level of government). The activities being paid for through the general fund constitute the core administrative and operational tasks of the government entity. Since the bulk of all resources flow through the general fund, it is most critical to maintain control over the expenditures from it.