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ACCOUNTING AND REPAYMENT PROVISIONS OF THE PICK‐SLOAN MISSOURI BASIN PROGRAM 1
Author(s) -
Johnson Bruce B.
Publication year - 1981
Publication title -
jawra journal of the american water resources association
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.957
H-Index - 105
eISSN - 1752-1688
pISSN - 1093-474X
DOI - 10.1111/j.1752-1688.1981.tb02596.x
Subject(s) - treasury , subsidy , depreciation (economics) , liberian dollar , finance , business , hydroelectricity , investment (military) , economics , capital (architecture) , capital expenditure , agricultural economics , capital formation , engineering , archaeology , financial capital , politics , political science , market economy , economic growth , human capital , law , electrical engineering , history
The accounting and repayment practices employed by the Water and Power Resources Service (WPRS) greatly distort the actual resource allocation process and the ultimate repayment to the Federal Treasury. Through a series of transfers of capital repayment obligations to future development with modest or no interest charges, the repayment is reduced to only a fraction of the amount implied. In the case of the Pick‐Sloan Missouri Basin Program, the public subsidy of hydroelectric power is estimated to be $2 for every $1 of repayment. For irrigation investment, the direct repayment to the Federal Treasury is less than 10 percent of the annualized cost of the public investment, with irrigators repaying at a rate of less than $0.03 for every dollar of public expenditure.