A type of European budgetary payment.
The EU budget uses the notion of differentiated appropriations for multiannual operations. Differentiated appropriations distinguish between:
Commitment appropriations, which are pledges to pay, provided that certain conditions are fulfilled. Commitment appropriations cover the total cost, in the current financial year, of legal obligations entered into for operations to be carried out over more than one financial year.
Payment appropriations, which are the actual payments made to beneficiaries during the current financial year. They may either arise from commitments entered into during that year or preceding years.
Multiannual operations are usually committed in the year they are decided and paid over several years. Since the operations (projects and programmes) might not be concluded, payment appropriations are lower than commitment appropriations.
Non-differentiated appropriations authorise an equal amount of commitment appropriations and payment appropriations, so both aspects must be taken into account. They apply for administrative expenditure, agricultural market support and direct payments ( www.practicallaw.com/8-542-1765) .
The terms appropriations for commitment and appropriations for payment refer to differentiated appropriations and also non-differentiated appropriations.