Internal borrowing advances can be made from which sources?

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Internal borrowing advances come from funds that are already within the government’s own financial system and are available for use to smooth cash flows. The typical sources are internal revenue reserves, such as stabilization funds or Free Cash (unreserved fund balances). These funds are designed to be liquid and accessible for short-term needs, allowing the government to cover timing gaps in revenues and then repay as revenues come in. External borrowing or using only dedicated revenue like user fees doesn’t reflect internal borrowing, and not using stabilization would ignore a common internal source intended for cash-flow smoothing.