pay as you go
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The practice of a government agency funding new projects with money it has on hand from previous appropriations. That is, pay-as-you-go financing requires a government to save to pay for a project for which it does not receive a specific appropriation. The intent behind pay-as-you-go is to encourage responsible spending by a government. This is related to, but distinct from, paygo rules in the United States.
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pay as you goa PENSION scheme where current payments to pensioners are financed by current savings contributions by employees in the scheme. This can be contrasted with ‘FUNDED PENSIONS’ where pension payments are funded by past contributions to a PENSION FUND.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson