A Limitation of Financial Budgets Is That They Can Hide

question 20

True/False

A limitation of financial budgets is that they can hide inefficiencies if based solely on precedent rather than on periodic evaluation of circumstances and standards.

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Definitions:

Unfunded Mandates

Regulations or requirements imposed by higher levels of government without providing corresponding funds to cover the costs.

Block Grants

Funds provided by the federal government to state and local governments to support broad purposes with relatively few restrictions on how they are spent.

Cooperative Federalism

A concept of federalism in which national, state, and local governments interact cooperatively and collectively to solve common problems.

Federal Block Grants

Federal Block Grants are large sums of money given by the federal government to state or local authorities for general purposes within a broad subject area, allowing these entities the flexibility to allocate funds as they see fit.