Budget stabilization aims to minimize the impact of imbalanced revenue on the economy and the government. Stabilization funds are saved to manage times for unexpected economic slowdowns and budget deficits. One of the most important budget stabilization measures is to implement stabilization policies. These policies work to limit economic spending by keeping budget stabilization funds aside. These measures would be helpful for the state to carry out its economic activities even during economic downfall. For example, after COVID-19, the government of the United States provided economic aid to all the states from these stabilized funds.
Internal and External Challenges for Providing Goods and Services
Internal challenges for providing goods and services include corruption in operations and processes to allocate goods and services. Officials of a project might acquire the majority of means by themselves, and in this way, the government would have to spend more time and finance on one project, which will disturb the progress of the rest of the projects. Financial ups and downs also affect the provision of goods and services in the United States, affecting economic activity. Besides, external factors include government policies and environmental, technological, and social factors. All these challenges restrict the provision of public goods and services to a large extent. For example, in the past three years, disturbed technological and social factors due to COVID-19 negatively affected the provision of public and private goods and services
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