Two Major Issues Facing The Public Sector

Revenue and cost are the two most major issues facing the public sector agencies. This places agencies under pressure to reduce costs of operation and to lower expenditures to be able to account for revenue shortfalls. An example of this would be the constant variance in taxes for the general public. A major issue that is faced is reduced funding for agencies that leads to less staffing and the use of older or inoperable equipment. Property taxes and sales tax are two forms of revenue which primarily fund the public and are not recovered in a nearer future. After a recession countries and cities historically take approximately eighteen to twenty-four months to recover the economy due to the lack in collection of tax revenues.
The most influenced challenge that the public sector faces is the budget and reduction in tax revenues. Everything in the public sector is influenced by money; salaries, maintenance, equipment, and tools. The constraints of finance will always continue to impact the budget and programs within the organization for several years to come. The challenge of the …show more content…
Two types of fuel diesel and gasoline prices became fixed in 2010. If the economy sees no improvement the fuel prices will remain manageable and low, with the improvement of the economy the fuel cost rise. The unreliability of fuel changes allows for making the budget for fuel very difficult. The fuel industry has changed because it no longer depends on supply and demand or production. It is up to speculation of commodities, geographical events, and weather related effects in disruptions. It is a fair assumption that the public sector agencies are facing critical issues in their budget making tasks and that it also impacts many other areas. The budget is critical to mission success in that it allows the agencies/ programs understand how much, and what other programs they can participate in to make the most positive, impactful,