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Public and Private Finance in Property - Essay Example
Public finance can be understood from three core perspectives namely (i) resources generation (ii) economic stability and effective resource allocation. The central government has to ensure that it has generated enough revenue that can accommodate annual expenditure plans. …
The British government does not only depend on tax revenue to fund its budget but also other sources which include state owned organizations, privatizations, foreign direct investments, sale of assets. The British government own several corporations, which forms a commendable source of revenue to the government in form of profits. For instance, the UK government own the postal service company- Royal mail, train-operating company-East Coast, and education holding company- BPP Holdings. The British government has been involved in a number of privatizations whereby the government relieve its ownership and interest in parastatal to private investors. An example of such privatization includes that of the British rail in 1993. British government is major player in local business and this is evident through participation in sovereign wealth funds. The UK government own motorways, harbours, airport terminus and sewer lines that forms an important source of revenue to the government when members of the public use these infrastructure. The government has also in a number of occasions disposed off its assets to get additional revenue in order to fund its operations.
The UK government has been experiencing a number of challenges with its expenditure patters for a long period. It is quite unfortunate that the UK government’s total expenditure for its fiscal years have always surpassed its revenue (Parliament, 2012). The government has been forced in most cases to borrow surplus funds from the public in order to meet its expenditure need. ...