Part III Using the selected government budget from Parts I and II in the previous units, expand upon your previous work by discussing the prompts listed below. Discuss the privatizatio

Government Funding Project

The United States government supports public and private enterprises to enhance revenue growth and stabilize growing businesses. By providing funding, goods, and services, the government aims to help the community by all means. The government is granting consumers public and private goods for their protection. Although there need to be more means to fulfill all the wants, offering goods and services is to make them feel comfortable within their initiatives. In the past three years, the allocation of private and public goods and services has increased because the government's economic focus has broadened (Reiss, 2021).

Goals and Priorities of the Local Government Goods and Services

The local government's goals and priorities include promoting equitable income growth and recovery, protecting financial stability, enhancing national security, combatting climate change, and modernizing treasury operations (US, 2022). The COVID-19 pandemic in 2019 has perpetuated inequalities in America's economic systems and slowed global trade processes. The purpose of allocating public and private goods and services is to satisfy basic availability conditions. In the past three years, the allocation of public and private goods and services has gradually increased to achieve these goals and promote economic growth. For example, the government spending on the virtualization of small businesses has increased because during COVID-19 lack of remote working and virtual connections negatively affected the progress of small businesses. The government allocates goods and services to small businesses to carry out economic activity during all circumstances. During 2022, the focus remained on allocating goods and services for climate change and the modernization of business operations. Along with the two as primary focuses, the rest of the goals will also be achieved in the following years (US, 2022).

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 (KAIKAI, 2015).

Budget Stabilization Measures

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 (Wagner & Elder, 2016). For example, after COVID-19, the government of the United States provided economic aid to all the states from these stabilized funds.

Recommendations

Based on the analysis of the state of allocation of public and private goods and services, it is recommended that the United States focus on small businesses to improve economic activity at all times. The role of small businesses in economic growth must be supported. Using remote and virtual working platforms and providing security to workers, economic activity could be enhanced without fear of environmental crisis. The state is doing great to cope with the loss due to COVID-19, and much of the loss has been fulfilled through focused activities in the past three years.

References

KAIKAI, A. B. (2015). What are the challenges of providing public goods in developing countries? Developing countries and the problems of service delivery. GRIN. Retrieved January 10, 2023, from https://www.grin.com/document/307228

Reiss, J. (2021, July 21). Public Goods (Stanford Encyclopedia of Philosophy). Stanford Encyclopedia of Philosophy. Retrieved January 10, 2023, from https://plato.stanford.edu/entries/public-goods/

US. (2022). Goals and Objectives | U.S. Department of the Treasury. Treasury Department. Retrieved January 10, 2023, from https://home.treasury.gov/about/budget-financial-reporting-planning-and-performance/strategic-plan/goals-and-objectives

Wagner, G. A., & Elder, E. M. (2016). The Role of Budget Stabilization Funds in Smoothing Government Expenditures over the Business Cycle. SAGE Journals, 33(4). https://doi.org/10.1177/1091142105276442

The government of the United States is involved in different types of programs for society's well-being. One government funding program to help small businesses is the United States small business administration. If a person has a small business that is engaged in scientific development and research, then a person can qualify for a government grant under small business technology transfer and small business innovation research. The program has not filed for bankruptcy yet, and it’s been helping many new businesses establish their position in the industry (Marks, 2022).

After COVID-19, the government has been proposing new schemes and grants for small businesses 7nder the American Rescue Plan Act. In 2022, the government announced that it would distribute more than $10 billion to each state. In 2020, the government spent around $76 billion. While in 2021, the government spent approximately $41 billion. This shows that government spending on small businesses has increased over the last three years (Milano, 2013). The analysis shows that federal agencies get funding for small business from Congress called budgetary resources. Agencies are required to spend these budgetary resources bases on the promise, also known as an obligation. In 2022, the government had $21.24 billion in award obligations for small businesses, the number of transactions that happened was around 1.25 million, and the niner of new awards was estimated to be 352,676.

The analysis shows that COVID-19 greatly impacted small and medium enterprises. To help small businesses, the government support programs played a critical role in managing the crisis. There are multiple programs to help support small companies, such as the Pay Protection Program, with 5.2 million loans for small businesses. The SBA economic injury disaster loan program added around 3.6 million for small business loans valued at more than 91 billion dollars (SBA, 2022).

Small businesses play a significant role in the economy of the countries, or it can be said that it act as the backbone of the community. So, by funding small business activities, the government of the United States has also benefited through business activities in the SME sector. The entire idea was to help small businesses by giving them an investment in hand, which would not have been possible through traditional lenders. The impact on the government funding for small companies is also beneficial for the government because of local tax income, employment tax, and property tax. More businesses in the United States economy boost the government's tax income (Marks, 2022). So, it can be said that the government of the United States recognizes the importance of small businesses and helping them after COVID-19 lockdowns to ethically source taxes from them.

The biggest challenge to helping small businesses after COVID-19 is the war in Ukraine because the projection of the program has been hugely impacted. The economic effect of the conflict between Ukraine and Russia is unclear. Still, it is predicted that it can reduce the growth projection by one percent while the government may also face issues funding more businesses. Because of these challenges, the liquidity of SMEs has increased in the United States due to a "revenue shortfall." On the other hand, the biggest opportunity is to implement the loan easily. Companies can go to the official website of the SBA to apply for funding. SBA loans can also be obtained from banks (Milano, 2013). The biggest advantage of the opportunity of these types of loans is that they mitigate the risk of money from traditional al lending sources.

In conclusion, it can be said that the government is involved in different budgetary and funding facilities for various fields. The assignment is based on the funding for small businesses and how it benefits the SMEs and the government through taxes and employment. The SMEs are highly important for employment activities in the market so funding small businesses can be highly beneficial, and the program is also not bankrupt.

References

Marks, G. (2022, June 5). The federal government is offering $10bn to small businesses – here’s how to apply. The Guardian. https://www.theguardian.com/business/2022/jun/05/small-business-funds-minority-owned-credit-initiative

Milano, S. (2013). Role of Government in Promoting Small Business. Chron.com. https://smallbusiness.chron.com/role-government-promoting-small-business-60657.html

SBA. (2022). USAspending.gov. Www.usaspending.gov. https://www.usaspending.gov/agency/small-business-administration?fy=2022