ADM Topic 2 DQ 1
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ADM Topic 2 DQ 1
Assess discrepancies between public budgets and public needs. Explain the relationship between the public budget and the demand for public goods.
There are some discrepancies in the public budget and public needs because the public budget is developed on the basis of the resources on hand or expected in the budget period while the public needs are unlimited but they fulfilled through the public budget. There is direct relationship between the public budget and demand for the public goods because if there is demand for more public goods than the public budget will have to be increased to meet these demands for the public goods by producing more public goods. Once these public goods are produced and the demand for the public goods are fulfilled then the government will get the receipts in that are forecasted and included in the budget are increased.
Smith, Robert W. and Thomas D. Lynch. (2004) Public Budgeting in America. 5th Edition. Pearson; Upper Saddle River, New Jersey. 37.