How are capital projects funded?

Question

Quizplus · Accepted Answer

Capital projects are typically funded through the sale of general obligation or revenue bonds. These bonds are purchased by investors, such as mutual funds, insurance companies, and individuals, who receive interest payments and the return of the principal when the bonds mature. The funds raised through the bond sale are then used to finance the capital project. This method allows governments to spread the cost of the project over a longer period of time and avoid the need to raise taxes or cut spending in the near term.

How Are Capital Projects Funded