select one of the topics listed below and prepare a research essay on it of 2000 words; or prepare pieces of 1000 words on each of two topics you select. Please see the Unit Outline for more information on the assignment. (Note: You may, if you wish, respond to these propositions in the context of your home country’s public financial management settings and situation, rather than Australia’s. For example, you could respond to the third proposition in the context of intergovernmental financial relations in your home country, rather than those in Australia.) Topics • In devising their taxation and expenditure policies and programs, and in settling on their objectives for the budget balance and levels of public debt, governments should have regard for the interests of future generations. • The emphasis on the performance of governments, government agencies and officials in managing public finances has led to better, overall outcomes,but the arrangements in place by the Commonwealth for performance budgeting could be improved. • The revenue raising rights of the Commonwealth Government, relative to those of the States and Territories, are too extensive; its expenditure responsibilities should be limited; some of its taxes transferred to the States; and the means by which it transfers funds to the State and Territory governments should be changed • The framework for government procurement is too onerous and has developed into an unclear combination of efficiency, accountability and social objectives. Government agencies and officials should have more freedom in taking procurement actions. • There are some important benefits from and needs for resource rich countries like Australia to establish sovereign wealth funds, but also some drawbacks for these countries. • Internal and external auditing of both of the financial and program deliveryactivities of government agencies is important to ensure better performance, transparency and accountability. • The NPP formulation, submission and review process is too lengthy and demanding on “spending agencies”. Changes to the process and less burdensome submission requirements should be introduced. (Specify any changes you think should be made.) • Adherence to the four key governance principles (transparency, accountability, predictability and participation) when managing government finances, including when setting tax and spending policies,isan important contributor to establishing and maintaining sound and sustainable government finances.