Capital Budgeting

Capital Budgeting

Select a government agency (local/state/federal) and develop a four- to five-page APA-style paper summarizing the following:

1. Explain how the debt capacity of the governmental entity is determined.
2. Evaluate the effect of refunding or reorganizing existing debt obligations.
3. Analyze various funding alternatives that can be used to support debt obligations.

Your paper must be four to five pages (not including title and reference pages) and must be formatted according to APA style as outlined in the approved APA style guide. You must cite at least three scholarly sources in addition to the textbook.

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Introduction

Most government agencies have infrastructure and capital needs which exceed their budgets. In order to meet those needs, most of these agencies finance their deficit projects through issuing debts. If the debts are used appropriately, they can serve as an efficient fiscal policy tool for the agencies. These debts can be used to finance revenue generating assets which in turn would stabilize the agencies’ revenue earnings. However, if the agency depends highly on debts to finance its projects, the debts can act as fiscal strain (Shah, 2007).

How government entities determine infrastructure and capita

Analysis of agencies’ debt capacity usually facilitates well-informed and prudent……………..

APA

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