Financial allocation to local governments by the federal or the state government to supplement the cost of a project is called_____
- Revenue allocation
- Reimbursement
- Statutory allocation
-
Matching grant
The correct answer is: D
Explanation
A matching grant is a financial contribution provided by a higher level of government (federal or state) to local governments to help cover the costs of specific projects. The key aspect of a matching grant is that it requires the local government to contribute a certain amount of their own funds to receive the grant. This is done to ensure that the local government is also invested in the project and to encourage efficient use of resources.
- Revenue allocation refers to the distribution of revenue (usually taxes) collected by the government among various levels of government or different sectors.
- Reimbursement is the repayment of funds spent by an individual or organisation, typically for expenses already incurred.
- Statutory Allocation involves the mandatory distribution of funds based on laws or regulations, often involving pre-determined formulas or criteria.
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