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The setting aside of funds by an organisation or individual for a specific purpose. In the context of government expenditure, funds collected from a specific source can be earmarked to be spent on a predetermined objective. Thus, for example, funds collected for unemployment insurance (UIF) in South Africa are earmarked for people who have lost their jobs. However, during the COVID-19 period, UIF surplus funds were used to supplement the incomes of people whose salaries were reduced. In general the government is reluctant to earmark funds because it reduces their budgeting flexibility.