What are notes commonly issued in anticipation of?

Notes are commonly issued in anticipation of other revenue primarily because they provide a mechanism for government entities to manage their cash flow needs in the short term. When a government expects to receive various forms of revenue in the near future, such as sales taxes or fees for services provided, they may issue notes to bridge the gap between the current funds available and the anticipated revenue. This practice allows governments to meet immediate financial obligations while waiting for the expected income to be received.

In addition to tax revenue, governments also receive income from multiple sources, including permits, fees, and other forms of non-tax revenue. By issuing notes in anticipation of this other revenue, governments can ensure they maintain liquidity and avoid disruptions in service delivery or operational activities due to cash shortages.

Bond financing refers to longer-term financing options, while government grants are not typically anticipated in the same manner as direct revenue sources. Tax revenue is indeed a significant source of funds but is not the only consideration when governments issue short-term notes to address financial needs.