Principle That a Tender May Not Be Held for Work Without an Appropriation (Law No. 4734, Article 5)

An appropriation is the monetary amount allocated to contracting authorities from the budget to meet their requirements. The principle that a tender may not be held for work without an appropriation is one of the fundamental principles of Law No. 4734. Its purpose is to prevent contracting authorities from incurring expenditure beyond the appropriation given to them. Additional rules have also been introduced under Article 62 of the Law to bring the necessary discipline to public expenditure.