Finance
In public finance, there are a number of ideas that are used to discuss specific concepts and strategies. This helps administrators to comprehend what is happening and the long-term effects of various events on their fiscal position. To fully understand how they are applied requires carefully examining the fundamentals of public finance, the euimarginal principle, pareto criterion, the justification for government action, public choice and how these topics relate to the budgetary process. Together, these elements will highlight the different strategies that are utilized for and how they are impacting public entities. (Ekstedt, 2012) (Holzer, 2011)
The fundamental principles of public finance
The fundamental principles of public finance are to collect enough taxes and utilize them to effectively provide numerous services everyone is demanding. This is focused on three different areas to achieve these larger objectives. The most notable include: the efficient allocation of resources, the distribution of income and macroeconomic stability. These factors work in conjunction with each other to ensure that the government is meeting the needs of the people. (Ekstedt, 2012) (Holzer, 2011)
The efficient allocation of resources; is when administrators are making sure that the government is providing services in areas where they are needed the most and reducing any kind of waste. The distribution of income is where local officials will supply resources to ensure that the community can address the challenges impacting various segments (such as: the homeless and low income demographics). During this process, they are focused on meeting the objectives of the needy and reducing the negative impact of specific events on them. Macroeconomic stability is when the government is working to ensure that the economy functions properly by attracting jobs and local businesses to the area. These elements are designed to ensure that needs of the community is met and that the region can experience sustainable economic growth over the long-term. (Ekstedt, 2012) (Holzer, 2011)
The equimarginal principle, pareto criterion and the justification for government action
The equimarginal principle is a tool that is used by officials to examine the different alternatives and courses of action. This helps them to identify the best approaches for allocating various resources in the process and the lasting impact it will have on the community. The pareto criterion is used to evaluate the needs of voters and what issues are most important to them. This assists administrators in determining what areas should receive the most critical amounts of attention and resources. The justification for government action is when elected officials will demonstrate how their policies and programs are meeting the needs of people. This allows the public to see where their taxes are being spent and the way it is addressing the . (Ekstedt, 2012) (Holzer, 2011)
Public choice and the political processes
The public has a choice as to who they want to represent them and the will be provided to them. This means that they will select individuals who are closely aligned with these beliefs and can meet their larger objectives. The political process will involve having an open discussion of how different services should be provided and the way numerous resources will be allocated. This allows the public to determine if a particular candidate will meet their objectives and if they can provide them with the resources they require in meeting these goals. (Ekstedt, 2012) (Holzer, 2011)
Relate these topics to the budget process, its participants, and the key information used to make budget decisions.
These topics relate to budget process, by illustrating how various services are provided to everyone and the impact it will have on different stakeholders. This allows participants to understand what is happening and voice their concerns about these issues. At the same time, they can see which elected officials can achieve these objectives and how this could impact the way various services are provided to everyone. (Ekstedt, 2012) (Holzer, 2011)
The key information that is used to make budgetary decisions is: focusing on if it can meet the needs of large segments of the population, the impact it will have on the economy and ways it can help to improve the standard of living inside the community. These elements are important, as they will determine what programs are enacted and the focus of government officials in meeting the needs of the community over the long-term. (Ekstedt, 2012) (Holzer, 2011)
Clearly, there are a host of strategies that are utilized to by administrators in providing various services to the public and effectively allocating different resources for them. The concepts and tools that were discussed, are illustrating how they will account for the needs of specific segments in the process. This will assist them over the long-term in creating polices which are taking into account these issues.
It is also . This ensures that officials understand the views of the public and what matters the most to them. When this happens, they will be able to to these issues by placing resources in areas where it they are needed the most.
References
Ekstedt, H. (2012). Money in Economic Theory. New York, NY: Routledge.
Holzer, M. (2011). Public Administration. Armonk, NY: ME Sharpe.
