Which of the following best outlines the financial relationship of appropriations to taxation?

The correct choice highlights the fundamental relationship between appropriations, revenue, and taxation in public financial management. Appropriations refer to the legally authorized amounts that a government agency can spend, while revenue encompasses the income received by the government from various sources, including taxes.

By rearranging the formula in the chosen answer, it shows that the amount of taxation required is determined by taking the total appropriations and subtracting the expected revenue. This reflects the reality that if a government has set budgets (appropriations) for spending, it must assess how much it needs to raise through taxation after considering the revenue it anticipates receiving.

This relationship is crucial for effective fiscal planning in public works management, as it ensures that necessary projects can be funded while also managing taxpayer funds responsibly. Understanding this balance is essential for public works managers to operate within budgetary constraints while still delivering vital community services.