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Earmark (politics) In public finance, an earmark is a provision inserted into a discretionary government spending appropriations bill that directs funds to a specific recipient while circumventing the merit-based or competitive funds allocation process. The term earmark is used in this sense in the United States and South Africa.
There is a general consensus that earmarking benefit. taxes or user fees for related expenditures is an appropriate budgeting practice (e.g., earmarking. a special tax on highway fuels for construction and maintenance of highways). However, there. may be disagreement about what constitutes a benefit tax.