What is Public Finance

                                 Introduction

Every country need money to function. The revenue of the country is the collection of different taxes and returns on investment, while the government's expenditure is the collection of revenue. Healthcare, medical facilities, salary for employees and members, and so on are examples of costs. All revenue and expenditure are collected by or for the benefit of the public. As a result, finance is known as public finance, and the role of the people in terms of contribution is significant. It addresses revenue and spending at every point in which the public is involved, whether at the state or federal levels. The administration of public finances is critical to the development of the economy since its growth is mainly dependent on its effective usage.

1.    Objective Of Public Finance:-

The primary goal is to manage the public's fundamental requirements such as food, shelter, health, infrastructure, and education. All of these are the government's obligations in order to meet basic public requirements and contribute to economic progress.

Proper management results in economic development, which leads to national growth.

It also strives to eliminate inequality by efficient resource allocation, i.e., offering aid to the poor while collecting taxes from the wealthy.

It helps control inflation by various packages and means for its development.

2.    Types Of Public Finance:-

• Public Revenue-The government obtains money from the general people through direct taxation.

• Public Expenditure-Public expenditure refers to spending for the general public on things like infrastructure, basic health care, medical and educational facilities, and so on.

• Public Debt-When the government's spending exceeds its receipts, it can borrow money. To meet the demands of the country and administer the economy.

3.    Functions of Public Finance:-

• Management of income and expenditure by optimum utilization of the resources.
• Managing the growth and price stability in the economy.
• Providing the necessary needs and infrastructure to the public.
• Take initiatives for the development of the people, which can contribute to the nation’s development.
• Maintaining the transparency of the policies and the records of income and expenditures.
• Compare the actual position with the budgets and accordingly alter the policies and manage the economy.
• Monitor the functioning and effectiveness of the financial policy.
• Preparing the economic policies for the nation’s development and the economy.

4.    Scope:-The scope of public finance is not confined to financial management. It also focuses on maintaining proper infrastructure, contributing to the national economy, reducing unemployment, managing the financial pillars of the economy, operating the nation's hygiene and cleanliness, analysing tax collection, ensuring the tax burden is not too high, monitoring and enforcing the implementation of financial and fiscal policy, maintaining public trust, and so on.

5.    Conclusion:-Public finance is the management of public money. It is still confined to managing public money and other issues such as price stability, economic growth, income disparity, unemployment, human rights, and so on. The broad phrase is public financial management. It takes effective planning, resource allocation, and control of unfavourable events, among other things, to secure the nation's progress by enacting financial and fiscal policies, budgets, and so on.

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