määrärahavaraus

Määrärahavaraus is a Finnish term that translates to "appropriation reservation" or "budgetary reservation." It refers to a specific commitment made by a Finnish public entity, such as a government ministry or municipality, to allocate a certain amount of funds for a future expenditure. This reservation is typically made within the annual budget process.

The purpose of a määrärahavaraus is to signal and secure funding for projects or ongoing expenses that are planned but not yet fully realized or paid. It ensures that the necessary financial resources will be available when the expenditure is actually incurred. This is particularly important for multi-year projects, long-term contracts, or significant investments where immediate payment is not feasible.

A määrärahavaraus is a formal decision that binds the public entity to reserve the specified funds. It is distinct from an actual payment or disbursement. While the funds are committed, they remain within the entity's budgetary control until they are spent. The reservation allows for financial planning and predictability, preventing situations where essential services or projects are jeopardized due to a lack of available funds.

The practice is governed by Finnish public finance legislation and is an integral part of the state and municipal budgeting and financial management systems. It provides transparency and accountability in public spending by clearly identifying future financial obligations.