What is Public Finance

Public finance is a science that deals with the income and expenditure of public bodies and the government of a nation.
The government has to perform two kinds of functions obligatory functions and optional functions. To perform all these functions government requires a funds. Government raises funds from the public through taxes, fees, penalties, sales of goods and services and also by talking loans.

According to Findlay Shirras- “Public finance is the study of principles underlying the spending and raising of funds by public authorities.”

The information about public finance we have got from the above definitions are as follows:

1. It deals with the public income and expenditure.
2. Determines the collection of government revenue.
3. It deals with the provision and custody of study.
4. Taxes, fees, penalties are the sources of government fund.
5. It’s a border between economics and politics.

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