When Capital Projects, Debt Service, and Special Revenue Funds are Used

Government Funds.
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Capital Projects Fund
Capital projects fund means financial resources used to acquire or construct a major capital facility other than those financed by resources accounted for in the enterprise funds. The fund helps the government to report and account for a major acquisition and construction activity. The fund ceases to exist once the project gets completed. Good examples of projects financed by capital projects fund include; railways, roads, pipelines, and refineries. Mainly these funds are in from donations and are issued on a competitive basis to governments and non-governmental organizations. These funds can be raised through government funding, partnerships, private fundraising, and project financing (Kobulov, 2020).
In Kenya, the standard gauge railway construction was an excellent example of a capital project fund. The fund, which was acquired as a loan from a Chinese company, was purely used to construct and maintain the rail. The fund usually runs for some time up to and until the project is completed. These said projects in Kenya have been in progress since the country's current president ascended to power. Though the fund has been faced with corruption allegations all long, it is vital to note that the project, once completed, will be of great value to Kenyan economic growth.
Debt Service Fund
A debt service fund is a type of financial resource set aside to service payments of interest and principal on a debt for a particular time. This fund is important because it helps the government maintain a good leverage record. The fund is only set aside when a government has acquired a loan from another country or institution, and it has to honor the payments. Servicing debts helps a country and other organizations to have a positive debt service coverage ratio, meaning they can acquire and...