Final answer:
The statement is false because projects financed with special assessment debt would be accounted for in a capital projects fund, not the General Fund. This is in line with the financial practices of government entities managing budget deficits and capital expenses.
Step-by-step explanation:
When governments construct projects that are financed with special assessment debt guaranteed by the government, those projects would not typically be accounted for in the General Fund. Instead, they would be accounted for in a capital projects fund. This is because the General Fund is used for ordinary operations and recurring expenses, whereas capital projects funds are used for major capital outlays, particularly those financed by long-term debt. So, the statement is False.
When discussing government finances, it is important to recognize that governments may operate with a budget deficit, meaning that they spend more than they receive in taxes, hence public savings (T – G) is negative. This scenario necessitates borrowing (G – T), causing the government to be a demander of financial capital rather than a supplier.