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.

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.