Budget Modeling of Abidjan Ville Essay

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Introduction

Budget modeling is regarded as one of the key aspects of financial government practices, and the actual importance of proper planning is associated with the values of accurate allocation of financial resources of the city budget. The paper aims to review the history of Abidjanville city fiscal conditions, and give proper recommendations associated with the fiscal, administrative, and financial actions performed by the city government.

Analysis

First, it should be emphasized that financial conditions of the city may be defined by current condition of the financial variables of the budget in general, and revenue structure in particular. These parameters influence the economic behavior of the state, as well as the possible values of the economic levels that characterize the success of the economic system in general. (Penner, 77) As for the revenue structure of Abidjanville, it should be stated that it is not arranged properly, as expenses overwhelm the incomes per household, and the taxes are not proportionate to incomes and expenses. Walker (26) emphasizes the following statement:

In theory, such financial parameters may include anything that characterizes the supply or demand of financial instruments relevant for economic activity. This list might comprise a wide array of asset prices and quantities (both stocks and flows), as well as indicators of potential asset supply and demand. The latter may range from surveys of credit availability to the capital adequacy of financial intermediaries.

In the light of this statement, it should be emphasized that the actual importance of revenue structure analysis may be explained by the opportunity to analyze the deterioration rate of the revenues, as well as the possible changes in the tax burden. (Krimly, 254) Therefore, the growth rates for every period will be as follows:

FACTOR12345
Revenue per household$ 321.00$ 318.00$ 329.00$ 329.00$3 28.00
Sales tax as a percent of total revenue0.9380.9360.9350.9350.933
Expenditures per household$ 321.00$ 321.00$ 333.00$ 334.00$ 334.00
Low-income, sales tax-exempt households as a percent of population0.1390.1390.1420.1550.156
Growth Rates0.47 %-1.69 %0.00 %0.15 %

The overall growth rate of revenue per household value is 0.43%. Regardless of the positive value of this rate, the overall structure of the budget resources, and fiscal condition of Abidjanville city budget needs proper restructuring. (Mikesell, 171)

Recommendations

The most important recommendations that may be given for improving the fiscal condition of the budget are closely linked with the necessity to control the deterioration rate of the revenue base more properly. This will involve the reassessment of the revenues, and restructuring of the expenses to avoid negative growth rate values. Since the most important aspect of the fiscal condition assessment is based on the efficiency level of the administrative revenues collection. Therefore, there is a need to improve the regulation of the Sales tax as a percent of total revenue. This will help regulate the revenue / expenses balance, and control the growth rate more accurately.

Conclusion

Modeling of Abidjanville city budget is closely associated with the necessity to regulate the existing revenue / expenses balance, and control of the growth rate, which makes the deterioration rate too dangerous for the economic stability of the budget.

Works Cited

Krimly, Rayed. “The Political Economy of Adjusted Priorities: Declining Oil Revenues and Saudi Fiscal Policies.” The Middle East Journal 53.2 (2004): 254.

Mikesell, John. Fiscal Administration: Analysis and Applications for the Public Sector. Wadsworth Publishing. New York. 2002.

Penner, Rudolph G. “The Near-term Outlook for Fiscal Policy.” Economic Policy Review – Federal Reserve Bank of New York 6.1 (2000): 77.

Walker, David M. “Truth and Transparency: The Federal Government’s Financial Condition and Fiscal Outlook; America Needs to Understand the Nature and Magnitude of a Daunting Challenge.” Journal of Accountancy 197.4 (2004): 26.

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