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What are the three conditions to become a Fiscally independent? In terms of the reporting entity...

What are the three conditions to become a Fiscally independent? In terms of the reporting entity of government accounts.

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A special pupose government must also demonstrate that it is fiscally independent of other or local governments to be considered a primary government. A special government is considered to be fiscally independent if it has the ability to complete certain essential fiscal events without substantive approval by primary government. A special government is fiscal independent if it has the authority to do all the following ;

1. determine its budget without another government’s having the authority to approve and modify that budget.

2. levy taxes or set rates or charges without approval by another government.

3. issue bonded debt without the approval of another government.

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