Which term refers to the funds collected specifically for a defined purpose?

The term that refers to the funds collected specifically for a defined purpose is earmarked funds. Earmarked funds are typically allocated for a specific project or use, such as infrastructure development, education programs, or healthcare initiatives. This designation ensures that the money will be used solely for the intended purpose, providing transparency and accountability in the management of public resources.

Earmarked funds are often established through legislation or specific regulations that outline how the funds should be spent, reinforcing the idea that these resources are not just general revenue but are intended to support particular priorities within governmental budgets.

Discretionary funding refers to resources that can be allocated at the discretion of policymakers and are not tied to a specific purpose. Capital reserves involve funds set aside for future capital projects or investments, and contingency funds are allocated for unexpected expenses or emergencies. Therefore, these other terms do not convey the specificity and purposefulness inherent in earmarked funds.