Select the term that best fits the following definition: "An administrative reservation of funds by the local comptroller, in anticipation of a future obligation."

The term that best fits the definition "An administrative reservation of funds by the local comptroller, in anticipation of a future obligation" is commitment. A commitment represents a formal action taken to set aside budgetary resources in anticipation of an upcoming obligation or expenditure. This ensures that funds are reserved to meet future financial responsibilities and is a crucial part of financial management within an organization.

In the context of financial planning and budgeting, a commitment typically occurs before an actual obligation arises, as it helps in managing available resources effectively. It is a proactive measure to prevent overspending and ensures that resources are allocated appropriately for future needs.

Understanding the nature of commitments is essential as it aids organizations in maintaining fiscal discipline and planning for future expenses based on projected needs or contracts.