A public sector entity's future revenue requirements are not constrained by obligations associated with past decisions and events.

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A public sector entity's future revenue requirements may be constrained by obligations associated with past decisions and events, such as debt obligations, pension liabilities, and contractual agreements. These obligations require the entity to dedicate a portion of its future revenues to meet these commitments, which can limit its flexibility in determining future revenue requirements.

A Public Sector Entity's Future Revenue Requirements Are Not Constrained