True or False: A government's budget should focus solely on short-term goals given its one-year duration.

A government's budget should not focus solely on short-term goals, even though it typically covers a one-year period. A well-constructed budget takes into account both short-term objectives and long-term priorities. This comprehensive approach is crucial for ensuring sustainable fiscal health and accountability in managing public resources.

Focusing exclusively on short-term goals can lead to neglecting larger strategic initiatives that require ongoing funding and attention over multiple years, such as infrastructure development, education, and public health initiatives. Additionally, governments need to consider future financial implications, structural changes in revenue sources, and societal needs. A budget that incorporates long-term planning helps prepare for future challenges and aligns with overall governmental goals, rather than reacting solely to immediate needs.

Recognizing that fiscal policies and economic conditions can vary, a balanced budget process encourages a vision that extends beyond immediate fiscal responsibilities, ensuring that the government effectively serves its constituents now and in the future.