As Kommando alludes too, If you ask for a bar or anything to be machined to one inch with a tolerance of 1.5 thou, then you could get a bar with a permissible variance of 1.5 thou. That is the tolerance, its like an allowable inaccuracy.
If you ask for a clearance of 1.5 thou, as in this timing side bush situation, then the machinist will give you a jounal OD at say 1.350 and a bush ID at 1.3515 which is the journal plus 1.5 thou. That is the clearance. This is a very precise measurement.
Clearance and Tolerance are two very different things.
BTW Sorry if anyone considers accuracy in these matters to be splitting hairs.