Public Budgeting

Public Budgeting

Challenges of State and Local Budgeting

Economy faces many challenges such as huge unemployment, depressed real estate and rising cost of oil. This causes the state and local governments to cut down the costs by huge margins. The imperative problem that the governments face is the achievement of financial sustainability in the short and long term. The huge recession in 2008 till 2009, and the consequent slow revival have affected state and local budgets in the recent past. The use of performance budget by governments is to show the optimum use of the resources.

When the governments are not able ...