pay as you go
Also found in: Dictionary, Acronyms, Idioms, Wikipedia.
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.