The public in the budgeting sector uses several types of funds in budgeting. What are these types of funds and what are their purposes?

Ans. In the budgeting sectors , different types of funds are going to use that provide better and complete details related to funds and their related accounts. According to GAAP, funds can be divided into three different types; proprietary funds, fiduciary funds and government funds.

1. Government funds include many different types of funds as per their requirements like general funds, special revenue funds, debt service funds, capital projects funds and permanent funds.

2. Fiduciary funds are used to determine the net position and its changes in fiduciary. It includes agency funds, pension and other employee benefits trust funds, private purpose trust funds and external investment trust funds.

3. The prosperity funds are helpful in measuring the activities of government accounting involving business interaction. It include internal service funds and enterprise funds

Conclusion: 

So , we have basic three types of funds that include all the personal and business relations and transactions that provide complete description related to all accounting fields and provide true and clear picture to all those who are involve in any sort of business activity.