World English Dictionary
1.  to assign (money, a grant, fund, etc) to one particular purpose, so as to restrict its use: to ring-fence a financial allowance
2.  to oblige (a person or organization) to use money for a particular purpose: to ring-fence a local authority
3.  an agreement, contract, etc, in which the use of money is restricted to a particular purpose

Collins English Dictionary - Complete & Unabridged 10th Edition
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