As already mentioned, grants from higher levels of government can be a very
important source of capital financing for local governments’ capital
improvements in many nations. Even in countries where national and state
or provincial grants for local projects are generally limited, grants are often
available to finance certain kinds of local improvements, especially for smaller and less well-off local communities. A local government should have
a policy that encourages its leaders and officials to pursue grants to help
finance capital projects. Success in obtaining outside grants can significantly
lower the local costs for such projects