The Responsibilities of the National Government
The national government is responsible for environmental conservation. It has a positive effect on all countries. Centralizing the wealth of the States jointly supports the funding of environmental programmes. This pool of capital makes each local government's budgetary expenditures less costly (Ulbrich, 2013). Public security and assistance to the needy is also a central government program. Any country's gross domestic product is measured using its people' per capita income. It is also the national government that identifies those who live below one dollar a day so that national resources for public safety can be redistributed. This also enables the central government to decentralize its allocated budget to areas with more need.
The Responsibilities of the Local Government
Lighthouses are responsibilities of the local government. They usually act as land marks which symbolizes certain significance to the local natives. It has no significance as far as the economies of scale is addressed given that it is usually one or two in any local government (Ulbrich, 2013). Its positive impact is that the locals have the mandated to decide on its location. An inoculation for preschool children is a function of the local government. Preschoolers are young children under the protection of their parents and, in most cases, attend to school that are in close proximities to their homes. The local government thus conducts the inoculations.
Financing of a New Park
Positive externalities enable the third parties to also enjoy the services of the new park. Fee based system will enable the users to pay for the services offered at the park including the third parties, who could be visitors. General taxation however will enable every person to contribute towards its operation and most likely make it a free service (Ulbrich, 2013). This will mean that even those who do not attend the park are still paying for its operation and therefore favouring the third party more. In the event that positive externality is to be considered, fee based should be adopted. Coase theorem is applicable in the event that the dog market will be experiencing stiffer competition without necessarily having to involve financial transactions. General taxation therefore should be adopted in the financing of the park (Ulbrich, 2013). This shall enable its operation in the sense that every person shall feel like his contribution is into the park and will utilize it instead of the private competitive ones.
Conclusion
Services of both the local and central government serve a purpose of attending to the overall citizens. The financial operations are also conducted in collaboration of both the local and the central government. The local government is always a representation of the national government at lower levels.
Reference
Ulbrich, H. H. (2013). Public Finance in Theory and Practice. Second Edition. New York, NY: Routedge.
