Finance for Public Services Managers - Essay Example

There are various sources which provide governents the necessary access to the required funds to effectively and efficiently manage the affairs of the firms. The chief sources among them are Taxes, incomes and some private initiatives which are undertaken by the governments to fund the public service. The chief source among them are taxes which states levy on various entitites of the states including individuals, corporations etc. However, what must be understood is the fact that all three indicated methods of sources to finance the public services carry their own advantages and disadvantages and it is very critical sometimes that a fine balance need to be striken between all the sources otherwise any mismatch between the income and the expenses of the government can prove fatal for the economy of the country as it can have very detrimental impacts not only on the society but on the economy as well.

This essay will look into some of the above refereed methods of funding for the public services and would critically evaluate the effectiveness with regard to providing effective source to fund the public service facilities undertaken by the governments. Taxes are probably the oldest and most commonly used source of funding for public services. Taxes are also considered as the most effective tool of funding the public service. It is because of the fact that the scope of tax collection is extremely large and it covers almost all the members of the society including individuals, corporations, societies, banks etc.

Taxes are effective in the sense that they are not only bigger in their scope but also provide the largest chunk of the income sources to the government. The volume of tax collected is the largest chunk of the government income therefore they are the most effective means for the government to fund the public services. (Hunter, 2008) The taxes are collected in many forms. The most