Finance Policy Proposal And Local Administration Essay

Length: 3 pages Type: Essay Paper: #28117574 Related Topics: Economic Growth, Government, Federal Government, Local Government Published June 23, 2022
Excerpt from Essay :

Local Administration and Finance Policy Proposal

The Corona Virus pandemic resulted in an economic recession that caused the U.S. real gross domestic product (GDP) to decline by 3.5%. This led to the loss of employment for more than 20 million workers, initially prompting the federal government to initiate interventions that would cushion county, district, and local governments (OECD, 2022). Initially, the intervention adopted was a domestic cash-transfer program involving a $1200 monthly stipend disbursement. However, the economic stimulation as the covid-19 regulation protocols have been withdrawn will necessitate more strategic financial policies at all levels of government (Aharon et al., 2021). The governments responsibility is to create the environment and structures that prevent economic damage. Cash transfers were intended to inject money through consumers expenditure into the economy. Still, as the economic environment changes, the government needs localized financial policies to stimulate new business and growth of existing ones.

The pandemic led to the first full-year economic contractions since the 2008 financial crisis. Personal consumption fell by 3.9%, the main source of government revenue and is the lowest since the 1932 recession. The outbreaks impact differs across regions depending on the ability of employees to work remotely, with areas that rely largely on small and medium-sized enterprises being affected disproportionately (Barbero, de Lucio, and Rodrguez-Crespo, 2021). The regions where the high mortality rates were also disproportionately affected, especially densely populated regions being the most affected in the first wave of outbreaks. In contrast, the rural and less densely populated were affected the most in the second wave of the infection. Consequently, the economic impact of the pandemic in different regions varies, necessitating ideal interventions that are ideal to these set of conditions in economic recovery planning. The government interventions at different levels vary spending on their mandates and the unique challenges and opportunities they encounter.

The federal government policies are often driven to meet the changes in international trade and create capacity locally for economic growth. Consequently, the fiscal policies adopted by the federal government are should be geared towards economic stimulation at an international level and securing the national…structures, and attracting foreign direct investments. These measures can be implemented simultaneously, but the challenges ideal to a region determine the priorities of government expenditure and recovery policies.

In areas that rely on small and medium-sized enterprises for economic growth, the local governments are inclined to adopt regulations that foster economic growth and make capital accessible. The dissemination of funds allocated by the government under the CSFRF is limited to its identified purposes. Consequently, the strategies adopted by local governments should be aligned to these functions (Nicola et al., 2020). Notably, the disbursement and the localization of strategies can be accomplished by formulating government-sponsored and joint powers agreement pools. Establishment of local government investment pools (LGIPs) that would be set up through intergovernmental agreements (joint powers) or authorized under state statutes and sponsored by the state or local governments (OECD, 2022). Such agreements allow state and local governments to work collectively through a board of trustees that is made up of public officials, custodial services, participant record keepers, independent auditors, and legal services. These measures accountability…

Sources Used in Documents:

Reference List

Aharon, D., Jacobi, A., Cohen, E., Tzur, J. and Qadan, M., 2021. COVID-19, government measures, and hospitality industry performance. PLOS ONE, 16(8), p.e0255819.

Barbero, J., de Lucio, J. and Rodríguez-Crespo, E., 2021. Effects of COVID-19 on trade flows: Measuring their impact through government policy responses. PLOS ONE, 16(10), p.e0258356.

Nicola, M., Alsafi, Z., Sohrabi, C., Kerwan, A., Al-Jabir, A., Iosifidis, C., Agha, M. and Agha, R., 2020. The socio-economic implications of the coronavirus pandemic (COVID-19): A review. International Journal of Surgery, 78, pp.185-193.

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