Sunday 12 August 2012

FUNDING

Everyone tend to be extra cautious when it comes to funding . This is because their choice of funding will determine what kind of outcome or product will they get . In conlusion , funding plays a very important part in our life

What does funding means ? Funding is an act of providing resources , mainly resources such as money , effort , time and humanpower in order to support a particular investment , infrastructure or an organisation . In terms of the whole nation , the most important decision that any government must perform is the funding issue . As we all know , the government revenue is based on the amount of taxes , royalties and other legal sorce of incomes . The total amount of money collected must go into an account known as the  NATIONAL CONSOLIDATED FUND . Then , the Ministry of Commerce and the National Bank will draft the national spending plan for the country , let say its TENTH MALAYSIA PLAN . They will then distribute the revenue into every sector acording to their importance , some will also be used to pay the nation 's debt to the World Bank and the rest will be stored for emergency .

Prudential financial management is the most important criteria of any type of  funding , be it the government , organisation and families . For the government , they need to inject a lot of money into the health , infrastructure , defense and education sector . The failure to inject money especially  into health and education sector will result in the people being unable to get first rate healthcare and education at subsidised price , therefore resulting in mass decline in health and literacy level of the mass . When this happened , the real purpose of the government which is to serve the people had been defeated .

In term of organisations , big companies need to carry out consistent funding activities in order to raise capital for their commercial projects in their respective field , be it property , plantation or mining sector , just to say a few . The failure to raise enough capital will result in their project , especially the one offered by the government , will result in the project being taken over by another private company . As a result , that particular company will suffer from financial losses and their corporate reputation might be at stake .

The same goes to families and individuals . They must invest their money into education , healthcare , food and shelter . For those who are recently married , raise some money to buy a decent home , at least an apartment or flats because shelter is a basic need for everyone . The failure to spend money on any of the sector mentioned above will result in their quality of family lifestyle being compromised .

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