2. In simple Layman terms, Public Finance is the
study of finance related to government
entities. It revolves around the role of
government income and expenditure in the
economy.
Public Finance deals with income and
expenditure of government entity at any level
be it central, state or local.
3. Tax Collection
Tax collection is the main revenue source
for government.
Budget
Is a plan of what the government intends
to have as expenditures in fiscal year.
Expenditures
These are everything that a government
actually spends money on such as social
programs, education and infrastructure.
4. Deficit/Surplus
If the government spends more then it
collects in revenue there is a deficit in that year.
If the government has less expenditure than it
collects in taxes, there is a surplus.
National Debt
If the government has a deficit, it will fund
the difference by borrowing money and issuing
national debt.