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Public Organization's Finances

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How to understand public finances

I need several examples of each answer.

a. Identify opportunities to develop the state or local economy.

b. Identify strategies to improve the government's bond rating.

c. Explain how unplanned events affect intergovernmental fund transfers.

d. Recommend long-term financial reserve strategies to mitigate future risks.

I

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Public Organization's Finances are discussed very comprehensively in this explanation..

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I need several examples of each answer.

a. Identify opportunities to develop the state or local economy.
One opportunity to develop the state is to attract outside investment in the state. This is done by making the state more attractive to investors and business people. One example of how the state can be made attractive is to offer a tax free status for any new industry for a period of five years. Another example is that of offering a very low interest loan to companies that set up business in the state.
Another opportunity to develop the state economy is to spend more on infrastructure. This method will develop the local economy. For instance, if roads are build in the state the transportation becomes easy and this has the potential of attracting businesses into the state. New businesses improve the economy by increasing employment, generating income and paying more taxes.
Finally, if the state government sets up businesses the local economy will develop. For example, if the state opens an ore processing factory in the state, it will provide more employment to the residents and additional income to the state.

b. Identify strategies to improve the government's bond rating.
There are several strategies to improve the ...

Solution provided by:
Hatim Baxamusa, MBA
Education
  • BSc , University of Calcutta
  • MBA, Eastern Institute for Integrated Learning in Management
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