Question

Provide two reasons why states and local governments may want to maintain their contrasting fiscal year; Name one budget decision made on the state or federal level that you disagreed with and explain why. Why do you think the legislature made the decision they did?

Answer 1

A fiscal year is a one year period that companies and governments use for financial reporting and budgeting purpose. A fiscal year is most commonly used for accounting purposes to prepare financial statements. Although a fiscal year can start on January 1st and end on December 31st, not all fiscal years correspond with the calendar year. Contractionary policies might be used to combat rising inflation. Generally, expansionary policy leads to higher budget deficits, and contractionary policy reduces deficits.

Reasons why states and local governments may want to maintain their contrasting fiscal year will be

1) a convenient time period to reference and review a company's or government's financial performance.

2) To deal with combat rising inflation

3)Governments use fiscal policy such as government spending and levied taxes to stimulate economic change

Budget decision disagreed:The government would have to make up the revenue either by raising taxes in a different area or cutting spending. the decision of legislature made beacause to increase revenue to meet their respective expenses of particular fiscal year.