According to FASAB Statement 36, what must governments do to sustain public services?

The requirement that governments must "sustain public services and meet obligations as they become due" aligns with the fundamental purpose of public sector financial management as outlined in FASAB Statement 36. This statement emphasizes the importance of accountability and stewardship in managing public resources. Governments have a duty to provide ongoing services to the public while honoring their financial commitments.

Sustaining public services involves not just maintaining current operations but also planning for their continuity over the long term. This includes ensuring that adequate resources are available to meet both current and future obligations. The focus on meeting obligations as they come due highlights the necessity for sound financial management practices that prioritize the timely fulfillment of financial responsibilities. It reflects a holistic approach to fiscal sustainability that balances short-term needs with long-term planning and resource allocation.

In contrast, other options suggest a more reactive or narrow focus. Cutting unnecessary spending and reducing the workforce might provide short-term financial relief but do not necessarily address the sustained delivery of services or the overarching liabilities that the government must fulfill. Focusing solely on future expenditures without regard to current obligations can lead to neglect of immediate service needs, potentially compromising public welfare. Therefore, the correct answer encapsulates the comprehensive responsibility governments have towards their citizens in ensuring both service continuity and fiscal prud