What happens to appropriations at the end of the fiscal year unless cancelled?

At the end of the fiscal year, appropriations typically remain as a reserve unless they are cancelled. This means that any allocated budget that has not been spent or encumbered can often be carried over into the next fiscal year, allowing governments to continue to use those funds for their intended purposes. This process acknowledges the need to ensure that budgets can adapt to differences in spending needs over time without losing the ability to access previously appropriated funds.

It's important to recognize that some jurisdictions may have specific rules surrounding the cancellation or continuation of appropriations, but the general practice is that, unless formally cancelled, these funds remain viable for use. This mechanism helps maintain fiscal responsibility by providing agencies with a cushion for projects that may take longer than anticipated or where spending timelines are not perfectly aligned with the fiscal year.