Appropriations

Appropriations are legal authorizations by a government to incur obligations and to make payments from public funds for specific purposes and for a defined period. They provide budget authority to agencies and programs. In many systems, appropriations are distinct from authorization: authorization creates or continues a program and sets policy, while appropriation supplies the money to fund it. Appropriations typically specify the amount, the purposes, and the time frame for which funds may be used.

Types of appropriations commonly include discretionary and mandatory funding. Discretionary funding is usually enacted through annual appropriations acts and requires yearly approval for each fiscal year. Mandatory or entitlement spending is established by existing law and does not require annual appropriation actions, though it is funded from designated revenues or trust funds. Governments may also issue supplemental or emergency appropriations to address unforeseen needs, and continuing resolutions to maintain funding at current levels when regular appropriations have not been enacted.

Process and mechanism vary by country but share common elements. Generally, the executive branch proposes a budget, and the legislature reviews, amends, and passes appropriation bills through committees and floor votes. Once enacted, the appropriation acts authorize agencies to obligate funds and make payments, subject to the terms and timelines specified. Some funds may lapse if obligations are not made by deadlines or may be reprogrammed with approval. The appropriations process is a central component of public finance, enabling administrative control over how public money is spent.