An economic and financial analysis is the process by which the economic viabilities of the company’s policies and steps are exposed vis-à-vis the financial indications of the same. The interrelations between the costs and benefits have to be incorporated in detail with maximum precision in order to construct a sound logical report of the economic and financial conditions.

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Economic and financial analysis of rural development of the backward regions

Task force members: Vanessa Hodges, Alexander Adams, Ryan Bolton

Analysis conducted in the zone of: Delaware and Illinois, US

Analysis compiled on: 6th September, 2011

Nature of analysis: Qualitative research

Objective and aim: This analytical study was conducted with the aim of collecting plentiful information about the ecological effects of the settlement of the inhabitants so that the government can be aided in designing programs for the development of the villages belonging to the regional municipalities.

Premise of the study: The program subsumes subsidy on housing costs and makes provision of lands for the homeless in order to ease the construction and household costs of the poverty stricken people.

The interrelationship between the economic and financial costs and benefits of the program are given as follows:

  • The two aspects of the plan, the costs borne and the benefits accrued, are well balanced for each household.
  • The overall public profit of the plan is positively inclined but that does not necessarily imply that all the households are equally benefited in the process.
  • The NPV of the plan is found to be stable from the project and household perspective.

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