This paper will use a state, federal or local government agency’s budget to analyze how revenues are derived. The paper will also analyze the different funds and their different uses such as proprietary, fiduciary and proprietary and the effect of public policies on revenues and the types of possible limits that can be imposed on the revenues. The paper will also analyze the economic conditions that affect revenue projections.
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Poor performance of the economy would make it difficult to predict expected revenues especially if necessary commodities such as oil and food were to be short in supply. Poor performance in such industries would drive up the prices of other commodities, and cause major disruption in countries’ budgets. Individuals would lose their job market since the cost of production would go higher, due to increased fuel and food prices. Therefore, it would be difficult to accurately know when the deficiency would be rectified, and the exact means to be used in the repair process.
Morgan, D.F., Robinson, K. & Strachota, D. (2014). Budgeting for local governments and
communities. .E. Sharpe.