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earmarking (H5)<br />The allocation of public revenue exclusively to the execution of a particular function of government, e.g. using the proceeds of television licences in the UK 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.<br /><em>See also:</em> dedicated budget; ringfencing; trust fund
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first economy (P2)<br />A socialist economy following the dictates of the national plan. It consists of governmental agencies, state-owned firms, cooperatives and other officially registered institutions.<br /><em>See also:</em> second economy
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