PPublic budgeting and the allocation of funds from various
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What are some of the limitations of certain revenue sources? What are the reasons for limitations? What are some complications of allocating and using the given revenue? How do stakeholders influence how the revenue is used?
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The solution discusses public budgeting and the allocation of funds from revenue sources.
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The main limitation with certain revenue sources is that regardless of the entity's financial status, the revenues allocated can only be used for limited purposes. Even if certain funds are in a negative cash flow status, the funds from other revenue sources cannot be allocated to cover such deficiencies. However, when funds are allocated from revenue sources, there can be additional limitations in their use, particularly if no stipulations govern the funds from the various revenue sources. The reasons mentioned are typically handled within management devising guidelines that are specific to the revenue sources and how the funds will be used. By writing specific guidelines, it decreases the associated risks with funds from ...
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