What do user fees cover in government operations?

User fees are designed to cover the cost of services that are directly provided to beneficiaries. This approach reflects the principle of charging those who directly use government services, rather than relying solely on general taxation to fund these services. For instance, user fees can be applied to services such as park entrance fees, utility services, and licensing fees, where individuals directly benefit from specific services or facilities.

The rationale behind implementing user fees is to ensure that public services are funded in a way that aligns costs with usage, promoting accountability and efficiency in government operations. By having users pay for the exact services they utilize, governments can allocate resources more effectively and reduce the burden on taxpayers who may not benefit from certain services.