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In accounting, especially for government operations, a "capital reserve fund" holds money that the officers or taxpayers have set aside for a specific purpose. The fund can be invested and grown, but can only be spent on the allowed purposes, unless new legislation is passed. The general fund can be spent for any legal purpose, or portions can be "earmarked" for a particular purpose, or put into capital reserve for spending on that purpose later.

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18y ago

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