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Financial Contingency Planning: Sources of Funding - Research Paper Example

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Financial Contingency Planning: Sources of Funding

However, the defense department will have to reduce its budget. Companies and the voters have understood that the current budget for the defense department is too high to be sponsored by the private and public partnerships. The cutback of the amount of money in the defense department’s budget would help in creating other programs that can save lives of the citizens, create employment, and bring about technological advancement in other sectors of the economy. One very important private-public partnership involving the national Geospatial-Intelligence Agency (NGA) and the government to improve the satellite imaging capacity is facing problems of inadequate funding. It is crucial to note that public and private collaborations are very important in financing any sector of the economy. Expensive budgets would, however, affect other spheres of life such as the socio-economic welfare of the voters. The budget needs to be cut down in the present situation of economic downfall (Forman, 2006). Bond issuance Bonds are issued by the government to its citizens to ensure that funds necessary in carrying out war activities are available. The bonds make the citizens feel to be part of the process in restoring peace around the world as well as putting in policies that will ensure that there are no terrorist activities in and outside the United States. Furthermore, bond issuance is beneficial, since it can help in the management of inflation in an over stimulated American economy. The money in circulation around the country is removed from the time the war began until the closing stages of the war. After the war, the funds may be liquidated to ensure that American citizens engage in consumer spending in their economy after the war. Bond issuance procedure is always accompanied by the call for patriotism and accountability in the American security system. Government war bonds are always below the normal value, since the government needs to make them affordable to all American citizens. However, the American citizens have shown lack of commitment in buying bonds, since they consider it an uncertain form of investment. War bonds have also failed to get major public support, since the economic situation in America is not suitable for the huge spending in the defense budget (Jensen & Guthrie, 2006). Non-profits Nonprofit organizations such as the defense department are in great risk, since they have limited sources of revenue. They majorly rely on charity and on government grants to finance their budget. Furthermore, nonprofit organizations face overreliance on few sources of revenue that may affect their operations. With the current state of economy, the high budget for the defense department, and the lack of willingness of the public to contribute to their budget, the defense department must cut down its budget estimates (Salamon, 2003). The defense department has developed a habit of coming up with alternative sources of income without assessing their effects on the long-standing productivity of the organization. Their actions often lead to programs that are not suitable for the stakeholder’s priorities in this time of economic challenges. The department has been forced to rely on projects that cannot contribute significantly to their budget estimates and become unable to deliver services as expected by the citizens. The best sources of revenue ...Show more

Summary

Financial Contingency Planning Public private partnership Funding the contingency financial plan in America needs an adequate development of the partnership between the public and the private partnerships to achieve the required amount of revenue necessary in the project…
Author : percivalgleichn
Financial Contingency Planning: Sources of Funding Paper essay example
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