Earmarking funds for specific purposes is a principle of dedicated fund management.

Funds formed by the enterprise itself or allocated by the competent authorities for special purposes, such as enterprise profit retention funds, renovation funds, overhaul funds, welfare funds, and overall retirement funds, must be used in accordance with the principle of earmarked funds.

The principles of earmarked funds are: (1) It should be stored in a special bank account, deposit first and then use it, and accept the supervision of the bank.

(2) It is necessary to clearly define the scope of use of various special funds and the boundaries with business operating funds, and they must not be misappropriated from each other.

(3) Special materials and supplies required for special fund projects should be separately reserved and accounted for separately.

(4) Various receivables and payables of special funds must be accounted for separately and settled in a timely manner.

According to the management status, special funds can be roughly divided into: 1. Funds whose income and expenditure are included in the budget.

For example, the capital construction fund in China's central budget is a fund and the special fund for changing oil-burning to coal-burning is listed as revenue and expenditure.

2. Special funds enjoying legal autonomy.

The Legislature establishes these funds by special act and specifies their amounts.

This part of revenue and expenditure is independent of other aspects of the fiscal system.

For example, although the Social Security Fund in the United States is not included in the congressional budget proposal, it is still a federal fiscal revenue and expenditure item. Its amount is reflected in the total federal fiscal revenue and expenditure combined inside and outside the budget, and according to regulations, most of the fund balances are replenished.

Invest in public bonds.

3. Special funds with greater autonomy.

It is generally controlled by each competent department and used for designated purposes.

For example, China's extra-budgetary funds are established, collected, retained and arranged to be used in accordance with the provisions of laws and regulations or in accordance with the procedures prescribed by the State Council. They are essentially not subject to the supervision of the legislative body.

Special funds can also be divided into temporary (valid within a certain period) and fixed according to different periods; divided into national and local according to their affiliation; divided into productive and non-productive according to the purpose of use

.

The management methods of special funds are not exactly the same. According to the different nature of each special fund, they are managed according to within-budget, extra-budget and other specially prescribed methods.