GFOA Capital Planning and Forecasting 2025 – 400 Free Practice Questions to Pass the Exam

Question: 1 / 400

How does the concept of "sustainability" impact capital planning?

It encourages immediate financial gain

It focuses on meeting current needs without compromising future generations

The concept of "sustainability" plays a crucial role in capital planning as it emphasizes the importance of meeting present needs while ensuring that future generations can also meet their own needs. This approach encourages decision-makers to consider the long-term implications of their projects and investments, promoting resource management that balances economic viability, environmental responsibility, and social equity.

In practical terms, when capital planners adopt a sustainable framework, they evaluate how their projects can contribute to a healthier environment, support community well-being, and foster economic resilience over time. This might involve investing in renewable energy sources, infrastructure that supports public transportation, or developments that conserve natural resources. By focusing on sustainability, planners can enhance the longevity and effectiveness of their investments, ensuring that they are not only beneficial in the short term but also viable and impactful for generations to come.

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It prioritizes short-term investments

It disregards community needs

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