Fiscal administration.1

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Public Administration

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Fiscal Administration 1

i) Definition

(a) Public finance analyses how government generates revenue and utilizes expenditure. Revenue is a source that generates money for the government. Expenditure is the means by which government allocates money.

Funds are generated from taxes and used in public finance for budgeting in a state. Public finance offers alternatives for correcting the flaws made by government in budgeting to ensure equality among all people.

ii) Supporting the statement

(a) Reasons for supporting the statement

It is important to secure the needs of future generations socially, economically and politically.

iii) Paradigm identified and an included perspective

(a) Benefits-Consideration policy

Benefits-consideration policy should work to improve the lives of future generations in order to increase their productivity. Benefits-Consideration policy takes into consideration the age and amount of contributions made by the current generation. Benefits-Consideration policy is effective for future generations if contributions made are lower than the benefits gained.

(b) Advantages of future budgeting of public finance

Public finance saves the government time and money in budgeting.

Public finance ensures equal contributions in future by both rich and poor people.

(c) Consequences of short-term budgeting in future

Short-term budgeting of public finance leads to instability of market due to lack of anticipation of inflation Short-term budgeting financial crises and leads to poor international relations. Short-term budgeting shifts focus from goals and hinder development of the state.

(d) Policies that affect future generations

Health insurance policies Federal policies Health insurance policies for children provide them with cheap medical care and protect them from contracting diseases.

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Federal policies protect the future generation from crime and developments by young people.

iv) Reasons for supporting these policies

(a) Health policies provide medical care for sick children at very low prices. Federal security protects future developments and infrastructure.

Public finance is a means of examining how government utilizes its state revenue and expenditure to benefit the public. Expenditure is a means in which government allocates money for doing state projects or budgeting. Revenue is a source that generates funds for government use. These funds mostly come from taxes, which are paid by the public. The ways these finances are used mightily influence the lives of the public, either positively or negatively. Public finance studies the effect of government budgets on people in a state. It offers alternatives for correcting the flaws in revenue and expenditure to ensure proper living standards among people. The aim is to better the lives of people by achieving ways to cater for everyone’s needs without favor or bias, financially.

Public finance should work to improve the quality of life of both current and future generations as supported by Ronald W. Johnson. This statement holds true because it is important for the current government to consider incoming generations in terms of social security, education, transport and communication. The consideration will improve a state’s stable growth physically, politically and socially. It ensures that future generations are productive enough to raise the economy of a state. It also guarantees the growth of a state and strengthens its relations overseas in the future.

If benefits of young people are taken to consideration, the contributions made towards providing them with proper health exceed these benefits. However, the same cannot be said for older people because their benefits, for example, pensions and health care are more than contributions. This paradigm concerning the comparison between benefits and contributions changes over time according to age. A huge difference shall be seen between young and old people concerning this comparison, if the aging population falls in addition to birthrate. As this happens, the payments made for benefits will increase thus reducing taxes and other contributions made. It is evident that benefits exceed contributions, and this difference should be given to the future generation.

There are many advantages of public finance targeting future generations. It maintains a stable budget over time. This is because it saves government time and money in making new budgets after every fiscal year. This, in turn, ensures that funds are saved and allocated for other projects to facilitate the growth of a state. Another advantage is that it ensures equal contributions in future generations to eliminate bias between rich and poor. It enables the government to plan and develop long-term goals in the future. It also ensures that benefits are maintained and that the public is satisfied.

If government plans its budget according to the current generation only, there will be long-term consequences. It creates instability within a state due to problems such as inflation. It is difficult to predict inflation. If a budget has not accounted for inflation, public finances will be wasted to cover for losses made. This affects the stability of market greatly in the future because of the uncertainty in inflation. As a result, people might be forced to pay expensive prices for goods and services.

If public finance works to improve the quality of life currently only, a state will lose focus on long-term goals. This is because the government will make decisions based on the current world. This, in turn, will hinder development of the state due to the lack of proper funding for projects. If future generations are not considered currently, it leads to a financial crisis thus maintaining good international relations will be difficult.

The statement in support of future generations is supported by insurance policies imposed by the government. It has formulated insurance policies that protect children’s health and security. Currently, elderly employed people working for the government are given a medical health cover that caters for their children. It covers children who are still in school and without employment. Small premiums are paid by a parent annually, and these funds are collected and transferred to a child incase medical attention is required. This policy secures a child’s health and the trend could be carried forward and improved in generations to come. It makes the process of getting treatment in health centers easy.

Public finances have currently been used to increase federal security in the state. This has been done to protect people and the state’s assets. As a result, the public enjoys freedom of security. It is important to make plans to increase the federal security in order to safeguard state developments like infrastructure. People should also be able to enjoy this security because it increases their productivity in building the state.

There are many reasons that support these policies. Children are able to receive medical attention for specific diseases at relatively low prices. This notion could be carried to the future and improved so that they can access a wide range of services from hospitals and health centers. The improved services protect children from contraction of diseases and reduce the spread. If this is done, young people will be able to implement the system to help their own spouses. Efficient federal security also ensures stable growth and development of a state. If the young generation is protected currently, they will increase development because they are future leaders.