How do you think balancing happens - meaning, what type of factors should be considered when...

How do you think balancing happens - meaning, what type of factors should be considered when the government cuts funds from one program to fund another?

Expert Solution

The source of income of government is through taxes . The government spends in various sectors of the economy . The balance between income and expenditure is budget . Government funds are allocated in programs where the government has to interfere to maximize social benefits . It is allocated in such programs where there is positive externality , such as education , healthcare . Government has limited funds , so allocation is done based on several factors .

Firstly , the sectors in which private sector will not invest at all such as infrastructure ( roads , bridges etc ) . Secondly , healthcare is another important program where the fund should be allocated in order to develop human capital . The program that requires immediate intervention should be dealt first . As for example if private sector education cost if too exorbitant and unaffordable for the poor then government has to provide education at a lower cost to increase literacy . The program that is most neglected such as agricultural welfare , income inequality etc should be allocated some funds .

Hence when government cuts funds from one program to fund another the most important factor that is considered is immediate governmental support and maximization of social welfare .

Rahul Sunny answered 7 months ago

What factors do you think that managers should consider when choosing a new AIS?

What factors should be considered when investigating variances?

What factors should be considered when deciding if a government should follow GAAP?

What is Type I error? How do we correct for Type I error? What happens when...

What is Type I error? How do we correct for Type I error? What happens when we correct for Type I error? What is Type II error? How do we correct for Type II error? What happens when we correct for Type II error? How can we correct for both Type I and Type II error at the same time? Which error is considered the worst type of error to commit?

what three factors should be considered when designing a market channel

What are some of the key factors and risks that should be considered when tendering for...

What are some of the key factors and risks that should be considered when tendering for a project? Please explain about both new factors & risks with examples

6. When you think of investing in real estate, what economic factors do you think are...

6. When you think of investing in real estate, what economic factors do you think are responsible for returns in the REIT market? Do you think REITs belong in your portfolio and why?

What factors do you think are important when developing a total cost model? What do you...

What factors do you think are important when developing a total cost model? What do you think might be the greatest barriers to developing a total cost of ownership measurement system?

what do you think happens to your budget when your financial position changes?

What factors should be considered when determining whether or not foreign debt is a problem for...

What factors should be considered when determining whether or not foreign debt is a problem for a country? Do you think Australia’s foreign debt is a problem? Do you think Argentina, Chile or China’s foreign debt if any is a problem? Discuss briefly.

Question