What is the role of government and what factors affect it?

Answer and Explanation

The main role of the government is to promote the general welfare of its citizens. Governments fulfills this function in several ways including managing and monitoring the economy businesses, banks and postal services, education system, roads, public utilities, regulating the safety of food and medicine, security and awareness.

Factors which affect the government.

Political (Citizen) Involvement

Government on the other hand and legislative boards, county managers, are increasingly using the budget to better understand citizens and spending. This transformation have major effect on budget allocations and the relative size of cities and counties.

Economic Influences

A number of factors can influence the economic environment of local government budgeting which includes; economic cycles, inflation, competition along local government and interest rates

Social and Demographic Change.

There are three social and demographic factors which have significant and lasting effects on local budgets which are; population, personal income and age distribution.

Legal and Intergovernmental Matters

These factors shape up the government in three different ways which are budgetary balance, mandates and combined effects.