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Definition and Understanding of Earmarking is the allocation of public revenue exclusively to the execution of a particular function of government, such as, using the proceeds of television licences in the United Kingdom to finance the British Broadcasting Corporation. Some governments have rejected this approach because of the inflexibility it introduces into public finances, arguing that different types of public expenditure grow at different rates from various tax revenues. Nevertheless, the principle is often followed in social expenditure and is a method of controlling it.
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