What is a main characteristic of limited-purpose governments?

Limited-purpose governments are typically created to handle specific functions or services, which inherently restricts their authority and responsibilities. The defining characteristic of these entities is their limited control over finances, primarily because they are often funded by narrow revenue sources and have specific mandates tied to particular goals or areas of service.

Unlike general-purpose governments, which have a broad range of responsibilities and the ability to exercise comprehensive taxing and spending powers, limited-purpose governments focus on particular areas, such as education, housing, or water management. This specialization means that their financial management is constrained to the resources available for their designated functions, which reinforces the idea of limited financial control.

In this context, understanding how limited-purpose governments function helps clarify their role within the larger government framework, highlighting their dependence on allocated funds and restrictions that guide their financial operations.