Question

In the Discussion we will look at benefits cost analysis, This is where you at certain expenditures and what returns you will for this. In government, you have a lot of stakeholders to please, so this is a great way to get programs passed through congress. Please cities your Source

Discussion the purpose for a cost benefit analysis for the government. why would the government need to do one of these in the first place?

please cities your Source

Answer 1

I am not supposed to cite external sources. However, Let me explain in detail why government needs to do cost benefit analysis.

The government taxes the citizens, corporates and other entities and serves its people through that. So the tax is the revenue for the government and public expenditure is its capital expenditure. The government sometimes also needs to borrow from external financial institutions such as Federal Reserve to spend on its promises to the people. The government also needs to ensure that it does not default on its interest payments to the financial institutions because that will make its future borrowings more expensive. Therefore government needs to take care as to not to miss its fiscal targets such as budget deficit.

Therefore, cost benefit analysis is of utmost importance to the government and the stakeholders