Which principle states that those benefiting from projects should contribute to the costs?

The principle indicating that those who benefit from a project should contribute to its costs is best captured by the Intergenerational Equity Principle. This principle emphasizes fairness across different generations by ensuring that current beneficiaries of a project bear an appropriate share of its costs, rather than deferring those costs to future generations who will also benefit.

In the context of public finance, this means that when a government undertakes a project that provides benefits to a specific group of people (like a new park or road), those individuals should ideally contribute towards funding it, ensuring that the costs are not solely borne by taxpayers who do not enjoy the same benefits. This promotes a sense of fairness and accountability in how public projects are financed and emphasizes the responsible management of resources over time.

The other options primarily address different financial principles or financing mechanisms that do not directly relate to the concept of beneficiaries contributing to costs. For instance, the Pay as you go principle focuses on funding projects through available revenues rather than borrowing, while Pay as you use refers more to pricing mechanisms for services rather than equity in funding projects. Unlimited Tax General Obligation Bonds pertain to specific debt instruments that allow municipalities to raise funds for projects but do not inherently emphasize the contributions of beneficiaries.