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Public Budgeting and Government Policies

How do current government policies affect your state's budget? What are the positive and negative effects? Provide examples.

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In this response, we will discuss the effects of current government policies on the state's budget, as these budgets are very sensitive to government policies. We will also discuss the positive and negative impacts of these policies on the budget. The scenario of two states, New York and New Jersey, will be further explained in this context.

Every state in the country depends on the financial aid provided by the federal government for development. Since recession has knocked the door and the federal government has suffered the deficit, i.e. the gap between tax and property revenues is widening, the Feds has adopted the policy of cost-cutting and has also reduced the financial aid to states in order to minimize the deficit.

The new policy of the federal government is to reduce the aid to states for Medicaid funding that also helps in cutting down the financial assistance provided for other variety of services. Yet, this will not ...

Solution Summary

Detailed response to the query with references. In this response, we will discuss the effects of current government policies on the state's budget, as these budgets are very sensitive to government policies. We will also discuss the positive and negative impacts of these policies on the budget. The scenario of two states, New York and New Jersey, will be further explained in this context.

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