Preface Chapter 1: Introduction: Market System and the Role of Government A Simple Illustration of How the Market System Operates Market Failure and the Need for Government Intervention Non-Market Failure Summary and Conclusion Review Questions PART I: BUDGET BACKGROUND Chapter 2: Evaluating a Tax System and Related Measures Objectives of Taxation Criteria for Evaluating a Tax System Optimal Tax Structure Methods of Tax Collection Incidence of Taxation Summary and Conclusion Review Questions Chapter 3: An Overview of Government Expenditures Types of Government Expenditure Growth in Government Expenditure Causes of Growth in Government Expenditure Limits to Growth in Government Expenditure Optimal Government Expenditure Summary and Conclusion Review Questions Chapter 4: An Overview of Government Revenues Primary Sources of Revenue Other Sources of Revenue Revenue Capacity Summary and Conclusion Review Questions PART II: THE OPERATING BUDGET Chapter 5: Understanding the Budget Process A Brief History of Budget Development A Digression on Fund Structure Budget as a Cyclical Process Budget as a Political Process Summary and Conclusion Review Questions Chapter 6: Budget Systems, Underlying Structures and Characteristics Budget Systems and Their Role in the Budget Process Types of Budget Systems Some Common Misconceptions Summary and Conclusion Review Questions Chapter 7: Elements of Budget Forecasting Background and Purpose Forecasting Process Forecasting Methods Cash-Flow Forecasting Measuring Forecast Errors Forecast Evaluation Summary and Conclusion Review Questions PART III: THE CAPITAL BUDGET Chapter 8: Capital Budgeting and Improvement Process Characteristics of a Capital Budget Types of Capital Assets Capital Budgeting and Long-Term Planning Capital Budget Process Impact on the Operating Budget Summary and Conclusion Review Questions Chapter 9: Evaluating Capital Projects and Budget Decisions Project Evaluation in Capital Budgeting Methods of Project Evaluation Summary and Conclusion Review Questions Chapter 10: Capital Rationing and Budget Allocation The Need for Capital Rationing in Government Conventional Approaches to Capital Rationing Alternative Approaches to Capital Rationing Other Programming Methods Application Dilemma &nb.