Public finance studies income and expenditure activities of the state or government, while private finance studies those of individuals and private entities. Both have the objectives of satisfying wants, though public finance aims for collective wants satisfaction. They both require balancing receipts and expenditures, and borrowing when expenditures exceed income. However, they differ in how expenditure is determined, the compulsory nature of public expenditure, and ability to apply the principle of equi-marginal utility.
Public finance deals with the revenue and expenditure of the government sector. It aims to maximize social welfare through public expenditure. Private finance deals with the income and expenditure of private individuals and firms. It aims to generate profit.
While their motives differ, public and private finance also share some similarities. Both involve income and expenditure that must be balanced. Both can rely on borrowing when expenditures exceed income. And rational decision making aims to maximize benefits in both.
This document provides an overview of public finance as a subject area. It defines public finance and outlines its key areas of focus, including public revenue, public expenditure, public debt, financial administration, and economic stabilization. It distinguishes public finance from private finance and discusses some major principles of public finance, including the principle of maximum social advantage. The document is a study material on public finance prepared by the University of Calicut School of Distance Education.
Public expenditure by governments has increased over time due to various factors:
1. Population growth has led to increased spending on public services like schools, housing, and healthcare.
2. Defense spending has risen to protect countries from foreign threats, consuming a large portion of budgets.
3. The expansion of administrative systems with more departments and elections has grown public administration costs.
4. Economic development through infrastructure projects, industries, and programs has required significant government funding.
Public economics unit 3 public expenditure and public debtNishali Balasingh
This document provides an overview of public economics, specifically public expenditure and public debt. It defines key terms like public expenditure, importance and objectives of public expenditure, classification of public expenditure, reasons for its growth, canons of public expenditure, and hypotheses about its growth like Wagner's law. It also defines public debt, causes and classification of debt, debt burden and its measurement. It concludes with discussing redemption of public debt.
1. Public finance involves the study of government spending, taxation, and deficits. It examines when and how governments should intervene in markets and the potential outcomes of policy changes.
2. Understanding how government actions affect the economy is important for public finance professionals. Government interventions aim to improve economic efficiency, distribute income, and stabilize macroeconomic conditions.
3. The scope of public finance includes analyzing public revenue, expenditure, debt, financial administration, and economic stabilization policies. It also involves allocating public goods, redistributing income, and reducing economic fluctuations through fiscal policy tools.
Debt management refers to the formation and implementation of policies related to public debt. The objectives of public debt management include supporting economic policy goals during times of inflation and deflation, providing funds during emergencies, being beneficial for government activities, and not adversely impacting the economic condition of the country. Principles of effective debt management include extracting funds from the public without coercion, minimizing interest costs, satisfying investors, converting short-term debt to long-term debt without economic disruption, coordinating with fiscal and monetary policies, and maintaining proper debt maturity levels and liquidity.
The document discusses disinvestment and payback period. It defines disinvestment as a government or organization selling or liquidating an asset or subsidiary. The objectives of disinvestment include reducing financial burden, improving public finances, and introducing competition. Payback period is defined as the time required for a firm to recover its original investment. It is calculated by dividing the original investment by the annual cash flows. Payback period is used to measure risk, control the effects of uncertain future cash flows, and minimize the impact on liquidity.
Public finance studies income and expenditure activities of the state or government, while private finance studies those of individuals and private entities. Both have the objectives of satisfying wants, though public finance aims for collective wants satisfaction. They both require balancing receipts and expenditures, and borrowing when expenditures exceed income. However, they differ in how expenditure is determined, the compulsory nature of public expenditure, and ability to apply the principle of equi-marginal utility.
Public finance deals with the revenue and expenditure of the government sector. It aims to maximize social welfare through public expenditure. Private finance deals with the income and expenditure of private individuals and firms. It aims to generate profit.
While their motives differ, public and private finance also share some similarities. Both involve income and expenditure that must be balanced. Both can rely on borrowing when expenditures exceed income. And rational decision making aims to maximize benefits in both.
This document provides an overview of public finance as a subject area. It defines public finance and outlines its key areas of focus, including public revenue, public expenditure, public debt, financial administration, and economic stabilization. It distinguishes public finance from private finance and discusses some major principles of public finance, including the principle of maximum social advantage. The document is a study material on public finance prepared by the University of Calicut School of Distance Education.
Public expenditure by governments has increased over time due to various factors:
1. Population growth has led to increased spending on public services like schools, housing, and healthcare.
2. Defense spending has risen to protect countries from foreign threats, consuming a large portion of budgets.
3. The expansion of administrative systems with more departments and elections has grown public administration costs.
4. Economic development through infrastructure projects, industries, and programs has required significant government funding.
Public economics unit 3 public expenditure and public debtNishali Balasingh
This document provides an overview of public economics, specifically public expenditure and public debt. It defines key terms like public expenditure, importance and objectives of public expenditure, classification of public expenditure, reasons for its growth, canons of public expenditure, and hypotheses about its growth like Wagner's law. It also defines public debt, causes and classification of debt, debt burden and its measurement. It concludes with discussing redemption of public debt.
1. Public finance involves the study of government spending, taxation, and deficits. It examines when and how governments should intervene in markets and the potential outcomes of policy changes.
2. Understanding how government actions affect the economy is important for public finance professionals. Government interventions aim to improve economic efficiency, distribute income, and stabilize macroeconomic conditions.
3. The scope of public finance includes analyzing public revenue, expenditure, debt, financial administration, and economic stabilization policies. It also involves allocating public goods, redistributing income, and reducing economic fluctuations through fiscal policy tools.
Debt management refers to the formation and implementation of policies related to public debt. The objectives of public debt management include supporting economic policy goals during times of inflation and deflation, providing funds during emergencies, being beneficial for government activities, and not adversely impacting the economic condition of the country. Principles of effective debt management include extracting funds from the public without coercion, minimizing interest costs, satisfying investors, converting short-term debt to long-term debt without economic disruption, coordinating with fiscal and monetary policies, and maintaining proper debt maturity levels and liquidity.
The document discusses disinvestment and payback period. It defines disinvestment as a government or organization selling or liquidating an asset or subsidiary. The objectives of disinvestment include reducing financial burden, improving public finances, and introducing competition. Payback period is defined as the time required for a firm to recover its original investment. It is calculated by dividing the original investment by the annual cash flows. Payback period is used to measure risk, control the effects of uncertain future cash flows, and minimize the impact on liquidity.
The document discusses public spending and its socio-economic impacts based on a case study of diminishing marginal returns to state spending. It provides background on public spending levels historically for developed countries, rising from 8% of GDP in 1870 to over 40% currently. Developing countries initially saw increasing returns to public spending but recent studies show diminishing and sometimes negative returns. Diminishing returns refer to decreasing GDP growth rates as public spending increases beyond an optimal level, as seen in developed countries from the 1970s-2000s. Negative returns are indicated by rising unemployment despite higher education spending, as in the U.S., Canada, France and U.K. following the 2008 recession.
Public finance deals with the government's role in the economy and how it raises and spends resources. It is concerned with the income and expenditures of public authorities and adjusting one to the other. Public finance aims to achieve efficient allocation of resources, income distribution, macroeconomic stabilization, steady economic growth, price stability, and balanced development through fiscal tools like taxes, spending, and debt.
The document discusses public expenditures by governments. It notes that public expenditures are reflected in national budgets and indicate a government's economic and social priorities. Developing countries tend to prioritize education spending to invest in human capital development. While public expenditures have increased due to factors like inflation, population growth, and infrastructure projects, they are necessary to support social services for large populations and address issues like peace and order. When evaluating public expenditures, both economic and social impacts should be considered, with priority given to programs that improve conditions for the poor masses and promote social justice.
Public finance deals with the revenue and spending of government entities and its impact on the economy. It has four key areas: public income from taxes and other sources; public expenditure on infrastructure, services, etc.; public debt to fund gaps between income and expenditure; and financial administration of budgets, policies, and their social and economic effects.
The main functions of public finance are allocation of resources to both private and public goods, redistribution of wealth to reduce inequality, and stabilization of the economy during booms and recessions. Private finance encompasses personal finance of individuals and families as well as business finance.
The public and private sectors differ in objectives, sources of income, ability to borrow, currency ownership, time horizons
Public expenditure refers to spending by central, state, and local governments. It can be classified in several ways: by function (defense, welfare); as revenue/capital; transfer/non-transfer; and productive/unproductive. Transfer expenditures like pensions provide benefits without returns, while non-transfer expenditures like infrastructure create outputs. Factors driving higher public spending include increased population and government functions, rising prices and costs, greater national wealth and tax revenue, and expanded social and development programs.
Public finance involves the study of government revenue and expenditures. It examines sources of tax and non-tax revenue, types of taxes, public spending objectives and classifications, public debt, and financial administration. Public finance aims to maintain economic stability and growth through tools like taxation, expenditures, loans, and debt management. Both public and private finance address the economic problem, aim to maximize satisfaction from limited resources, and balance income and expenditures, though they differ in allowed sources of funds, borrowing scope, budgeting approach, long-term perspective, and motivations.
The document discusses India's fiscal deficit, revenue deficit, effective revenue deficit, and primary deficit. It outlines the Fiscal Responsibility and Budget Management (FRBM) Act of 2003 and its amendments in 2012, which set targets to reduce the fiscal deficit and revenue deficit. It also discusses issues related to India's public debt management, high fiscal and current account deficits, and the economic survey's recommendation to establish a Public Debt Management Authority to improve debt management and reduce financial repression.
Public expenditure plays four main roles: contributing to demand, coordinating economic impulses, increasing public goods, and creating positive externalities. It is determined by political priorities and interpretations of the economic situation. Public expenditure impacts GDP and can crowd out private investment. It may behave pro-cyclically or anti-cyclically depending on how governments react to changing revenues during economic downturns by reducing or increasing spending.
This document provides an overview of public finance. It lists group members and is submitted to Sir Abu Sufyan. It then defines public finance as the branch of economics dealing with government revenue and expenditure. It notes public finance is divided into three branches: public revenue, public expenditure, and public debt. For each branch, it outlines topics covered such as types of taxes and their effects, how government influences production through spending, and purposes and principles of public debt payments. It also compares public and private finance and lists objectives and sources of public revenue as well as categories of public expenditures.
The document discusses the principle of maximum social advantage proposed by British economist Hugh Dalton. According to this principle, the optimal level of government fiscal activities is the point where marginal social benefits from public spending equals marginal social costs of taxation. This maximizes social welfare. The document explains this using diagrams showing marginal social benefit and marginal social sacrifice curves, with their point of intersection indicating maximum social advantage. It assumes taxes impose costs and spending provides benefits, with both subject to diminishing returns.
Effects of public expenditure on economy production distributionBhaumiki
Public expenditure on education in India has remained below the target of 6% of GDP, reaching a maximum of only 4.3% of GDP. Government expenditure on education as a percentage of total government expenditure averages around 13.5%. However, achieving the 6% of GDP target for education would require a substantial increase in funding, as the GDP has been growing faster than the rate of increase in education spending. Analyzing trends in public expenditure is important for understanding challenges in meeting policy targets for education financing.
MEANING
MEANING
DEFINITION
CLASSIFICATION OF PUBLIC EXPENDITURE
CAUSES FOR THE GROWTH OF PUBLIC EXPENDITURE
MEANING
DEFINITION
CLASSIFICATION OF PUBLIC EXPENDITURE
CAUSES FOR THE GROWTH OF PUBLIC EXPENDITURE
This document contains a 20 question multiple choice quiz on concepts in public finance and economics. The questions cover topics such as the definitions and scopes of public finance and economics, sources of public debt, effects of public expenditure, components of public finance, characteristics of business cycles, types of public facilities, modern terms for public finance, influences of fiscal policy, and differences between public and private finance. The correct answers to each multiple choice question are also provided.
Public finance deals with government revenue and spending at national, state and local levels. It aims to provide maximum social benefits to society. Private finance involves personal and business financial management, with the goal of fulfilling private interests and gaining profit. Both public and private finance have limited resources and must allocate funds rationally. They also both may borrow funds and adopt sound financial policies. However, public finance deals with transparent yearly budgets and long-term planning, while private finances can be kept secret and focus on shorter-term goals and individual benefits.
This document discusses India's budget deficits, public debt, and fiscal policy. It begins with an introduction on global fiscal problems like growing budget deficits in developed countries. It then discusses debates around measuring budget deficits, trends in India's growing public debt, and the importance of foreign capital flows for India's external and internal balances. The document outlines India's fiscal history and debt dynamics, noting increasing deficits, declining capital expenditures, and rising government borrowing. It concludes that India's deficit and debt dynamics pose sustainability risks if capital formation continues decreasing and debt variability remains high.
This document provides an introduction to the topic of public finance. It defines public finance as the study of government income and expenditure. Some key points:
- Public finance deals with the revenue and spending of public authorities like governments. It studies sources of public revenue like taxes and non-tax sources.
- Public revenue can be classified into tax revenue (direct and indirect taxes) and non-tax revenue (administrative revenue from fees/fines, commercial revenue from public enterprises, and other sources like borrowing).
- Public expenditure refers to spending by governments to perform functions like defense, infrastructure. Objectives include economic stability and development.
- Other components of public finance discussed are public debt, financial administration of
This document provides information about Bilal Qasim Mohammed including his education credentials and work experience. It lists his degrees which include a BSc in Economics, an MSc in Economics with a focus on monetary policy, and professional certificates in public debt management and project management. It also outlines the various jobs he has held over the years including working with NGOs, a university, UNICEF, and currently with the Central Bank of Iraq. The rest of the document appears to cover topics related to fiscal policy, public debt, and debt management.
1.Public Finance and Budgeting 2012(MKL) - Copy.pptxalazarmichael
This document provides information about a module on public finance and budgeting. It includes the module title and code, instructor details, objectives of the module, and an outline of module contents which cover topics such as the introduction to public finance, the budget cycle in the public sector, and public debt management. The document also defines key terms related to public finance, outlines the scope of public finance, and compares public finance to private finance by highlighting their similarities and differences.
Public Finance.pptxfor government and local governmentRasulShaban1
Public finance: Meaning, nature, scope and importance,
difference between private and public finance. Principle of
maximum social advantage. Role of state in public finance.
The document discusses public spending and its socio-economic impacts based on a case study of diminishing marginal returns to state spending. It provides background on public spending levels historically for developed countries, rising from 8% of GDP in 1870 to over 40% currently. Developing countries initially saw increasing returns to public spending but recent studies show diminishing and sometimes negative returns. Diminishing returns refer to decreasing GDP growth rates as public spending increases beyond an optimal level, as seen in developed countries from the 1970s-2000s. Negative returns are indicated by rising unemployment despite higher education spending, as in the U.S., Canada, France and U.K. following the 2008 recession.
Public finance deals with the government's role in the economy and how it raises and spends resources. It is concerned with the income and expenditures of public authorities and adjusting one to the other. Public finance aims to achieve efficient allocation of resources, income distribution, macroeconomic stabilization, steady economic growth, price stability, and balanced development through fiscal tools like taxes, spending, and debt.
The document discusses public expenditures by governments. It notes that public expenditures are reflected in national budgets and indicate a government's economic and social priorities. Developing countries tend to prioritize education spending to invest in human capital development. While public expenditures have increased due to factors like inflation, population growth, and infrastructure projects, they are necessary to support social services for large populations and address issues like peace and order. When evaluating public expenditures, both economic and social impacts should be considered, with priority given to programs that improve conditions for the poor masses and promote social justice.
Public finance deals with the revenue and spending of government entities and its impact on the economy. It has four key areas: public income from taxes and other sources; public expenditure on infrastructure, services, etc.; public debt to fund gaps between income and expenditure; and financial administration of budgets, policies, and their social and economic effects.
The main functions of public finance are allocation of resources to both private and public goods, redistribution of wealth to reduce inequality, and stabilization of the economy during booms and recessions. Private finance encompasses personal finance of individuals and families as well as business finance.
The public and private sectors differ in objectives, sources of income, ability to borrow, currency ownership, time horizons
Public expenditure refers to spending by central, state, and local governments. It can be classified in several ways: by function (defense, welfare); as revenue/capital; transfer/non-transfer; and productive/unproductive. Transfer expenditures like pensions provide benefits without returns, while non-transfer expenditures like infrastructure create outputs. Factors driving higher public spending include increased population and government functions, rising prices and costs, greater national wealth and tax revenue, and expanded social and development programs.
Public finance involves the study of government revenue and expenditures. It examines sources of tax and non-tax revenue, types of taxes, public spending objectives and classifications, public debt, and financial administration. Public finance aims to maintain economic stability and growth through tools like taxation, expenditures, loans, and debt management. Both public and private finance address the economic problem, aim to maximize satisfaction from limited resources, and balance income and expenditures, though they differ in allowed sources of funds, borrowing scope, budgeting approach, long-term perspective, and motivations.
The document discusses India's fiscal deficit, revenue deficit, effective revenue deficit, and primary deficit. It outlines the Fiscal Responsibility and Budget Management (FRBM) Act of 2003 and its amendments in 2012, which set targets to reduce the fiscal deficit and revenue deficit. It also discusses issues related to India's public debt management, high fiscal and current account deficits, and the economic survey's recommendation to establish a Public Debt Management Authority to improve debt management and reduce financial repression.
Public expenditure plays four main roles: contributing to demand, coordinating economic impulses, increasing public goods, and creating positive externalities. It is determined by political priorities and interpretations of the economic situation. Public expenditure impacts GDP and can crowd out private investment. It may behave pro-cyclically or anti-cyclically depending on how governments react to changing revenues during economic downturns by reducing or increasing spending.
This document provides an overview of public finance. It lists group members and is submitted to Sir Abu Sufyan. It then defines public finance as the branch of economics dealing with government revenue and expenditure. It notes public finance is divided into three branches: public revenue, public expenditure, and public debt. For each branch, it outlines topics covered such as types of taxes and their effects, how government influences production through spending, and purposes and principles of public debt payments. It also compares public and private finance and lists objectives and sources of public revenue as well as categories of public expenditures.
The document discusses the principle of maximum social advantage proposed by British economist Hugh Dalton. According to this principle, the optimal level of government fiscal activities is the point where marginal social benefits from public spending equals marginal social costs of taxation. This maximizes social welfare. The document explains this using diagrams showing marginal social benefit and marginal social sacrifice curves, with their point of intersection indicating maximum social advantage. It assumes taxes impose costs and spending provides benefits, with both subject to diminishing returns.
Effects of public expenditure on economy production distributionBhaumiki
Public expenditure on education in India has remained below the target of 6% of GDP, reaching a maximum of only 4.3% of GDP. Government expenditure on education as a percentage of total government expenditure averages around 13.5%. However, achieving the 6% of GDP target for education would require a substantial increase in funding, as the GDP has been growing faster than the rate of increase in education spending. Analyzing trends in public expenditure is important for understanding challenges in meeting policy targets for education financing.
MEANING
MEANING
DEFINITION
CLASSIFICATION OF PUBLIC EXPENDITURE
CAUSES FOR THE GROWTH OF PUBLIC EXPENDITURE
MEANING
DEFINITION
CLASSIFICATION OF PUBLIC EXPENDITURE
CAUSES FOR THE GROWTH OF PUBLIC EXPENDITURE
This document contains a 20 question multiple choice quiz on concepts in public finance and economics. The questions cover topics such as the definitions and scopes of public finance and economics, sources of public debt, effects of public expenditure, components of public finance, characteristics of business cycles, types of public facilities, modern terms for public finance, influences of fiscal policy, and differences between public and private finance. The correct answers to each multiple choice question are also provided.
Public finance deals with government revenue and spending at national, state and local levels. It aims to provide maximum social benefits to society. Private finance involves personal and business financial management, with the goal of fulfilling private interests and gaining profit. Both public and private finance have limited resources and must allocate funds rationally. They also both may borrow funds and adopt sound financial policies. However, public finance deals with transparent yearly budgets and long-term planning, while private finances can be kept secret and focus on shorter-term goals and individual benefits.
This document discusses India's budget deficits, public debt, and fiscal policy. It begins with an introduction on global fiscal problems like growing budget deficits in developed countries. It then discusses debates around measuring budget deficits, trends in India's growing public debt, and the importance of foreign capital flows for India's external and internal balances. The document outlines India's fiscal history and debt dynamics, noting increasing deficits, declining capital expenditures, and rising government borrowing. It concludes that India's deficit and debt dynamics pose sustainability risks if capital formation continues decreasing and debt variability remains high.
This document provides an introduction to the topic of public finance. It defines public finance as the study of government income and expenditure. Some key points:
- Public finance deals with the revenue and spending of public authorities like governments. It studies sources of public revenue like taxes and non-tax sources.
- Public revenue can be classified into tax revenue (direct and indirect taxes) and non-tax revenue (administrative revenue from fees/fines, commercial revenue from public enterprises, and other sources like borrowing).
- Public expenditure refers to spending by governments to perform functions like defense, infrastructure. Objectives include economic stability and development.
- Other components of public finance discussed are public debt, financial administration of
This document provides information about Bilal Qasim Mohammed including his education credentials and work experience. It lists his degrees which include a BSc in Economics, an MSc in Economics with a focus on monetary policy, and professional certificates in public debt management and project management. It also outlines the various jobs he has held over the years including working with NGOs, a university, UNICEF, and currently with the Central Bank of Iraq. The rest of the document appears to cover topics related to fiscal policy, public debt, and debt management.
1.Public Finance and Budgeting 2012(MKL) - Copy.pptxalazarmichael
This document provides information about a module on public finance and budgeting. It includes the module title and code, instructor details, objectives of the module, and an outline of module contents which cover topics such as the introduction to public finance, the budget cycle in the public sector, and public debt management. The document also defines key terms related to public finance, outlines the scope of public finance, and compares public finance to private finance by highlighting their similarities and differences.
Public Finance.pptxfor government and local governmentRasulShaban1
Public finance: Meaning, nature, scope and importance,
difference between private and public finance. Principle of
maximum social advantage. Role of state in public finance.
This document provides an introduction to the topic of public finance. It defines public finance as the study of the income and expenditure of public authorities, including all levels of government. It discusses the key components of public finance, including public revenue, public expenditure, public debt, and financial administration. Public revenue comes from tax revenue sources like direct and indirect taxes, as well as non-tax revenue sources such as administrative revenue, commercial revenue, and other sources. The document contrasts public finance with private finance and outlines some similarities and differences between the two fields.
Public finance is the study of the role of government in the economy. It assesses government revenue sources like taxes and expenditures. The main goals of public finance are managing public resources, promoting economic growth and development, reducing inequality, and maintaining price stability. Public finance functions include creating economic policies, managing income and expenditures, maintaining transparency, and fulfilling public requirements. The two main components are public revenue, which comes from tax and non-tax sources, and public debt, which is money borrowed by the government. Private finance, on the other hand, refers to financial activities and decisions made by individuals and private businesses regarding personal matters like savings and investments or business matters like obtaining capital.
The document discusses the scope and functions of public finance. It defines public finance as dealing with the income and expenditure of the government. The scope of public finance includes three branches of budget policy - allocation, distribution, and stabilization. It aims to secure adjustments in resource allocation, income distribution, and economic stabilization. The functions of modern government that require public financing are also outlined, such as security, justice, economic regulation, social welfare, resource conservation, administration, education, and public health.
This document provides an introduction and overview of public finance. It defines public finance as dealing with the income and expenditure of public authorities and the adjustment of one to the other. The document outlines the meaning, scope, divisions, and need for public finance. Specifically, it discusses how public finance includes the study of public revenue, expenditure, debt, and financial administration. It also examines how public finance aims to achieve objectives like economic growth, distribution of wealth, and stability.
This document provides an introduction to public sector finance, outlining specific objectives of understanding sources of government revenue, expenditures, borrowing, budgeting techniques, auditing, and restructuring. It covers definitions of key terms like public sector, public finance, and differences between private and public financial management. The document aims to explain the importance and justification of government intervention in the economy through the public sector.
Public finance deals with the revenues and expenditures of government entities and aims to study how government fiscal policies impact the economy. It encompasses the sources of government income through taxes and other means, how money is spent on public services, how deficits are financed through public debt, and the administration of the public budget. Public finance also plays an important role in promoting economic growth and stability in both developed and developing nations.
Public finance deals with the revenue and expenditures of governments and aims to maximize social welfare. It covers government budgeting, taxation, public spending, and public debt. Historically, governments focused on basic functions like security, but modern governments undertake additional projects and welfare activities. As government responsibilities increased, the need to mobilize more resources also grew. Fiscal policy uses taxation, spending, and monetary tools to influence macroeconomic variables like employment and inflation. There are various approaches to defining public finance, but in general it concerns the principles and practices of raising and allocating public funds to achieve economic and social goals.
Public finance deals with the government's revenue and expenditures. It has expanded in scope from just covering administrative and defense costs to also promoting citizen welfare through various economic and social functions. The subject matter of public finance includes studying the effects of taxation, spending, borrowing, and deficits on economic goals like growth, stability, equity, and efficiency. It also analyzes the fiscal policies used to achieve these objectives. Public finance has traditionally been divided into four parts - public revenue, public expenditure, public debt, and financial administration.
Fiscal policy deals with government taxation and spending decisions. The key instruments of fiscal policy are the budget, taxation, public expenditure, public revenue, public debt, and fiscal deficit. Fiscal policy can be either expansionary, which stimulates economic growth through tax cuts or increased spending, or contractionary, which slows growth through tax increases or spending cuts. The current US fiscal policy has led to massive government debt levels, with mandatory spending on programs like Social Security, Medicare and Medicaid accounting for most of the budget. The objectives of fiscal policy include mobilizing resources, reducing inequality, price stability, employment generation, balanced regional development, improving the balance of payments, increasing national income, developing infrastructure, and earning foreign exchange.
The document outlines topics related to the role of government in a mixed economy. It discusses market efficiency, externalities, public goods, and how government policy can address market failures. It also covers cost-benefit analysis of government investments, welfare programs, taxation, and deficit financing. The core questions of public finance are outlined, including when and how the government should intervene in the economy, and the effects of different interventions.
Public finance is concerned with how governments fund activities and administer finances. It involves theories of public revenue (taxes), expenditures, and debt. The objectives of public finance include maintaining order, promoting justice and development. Its main functions are allocation of resources, distribution of income, economic stabilization, and economic growth. Allocation involves determining spending on public goods via the budget. Distribution aims to reduce inequality through taxes and programs for the poor. Stabilization uses fiscal policy to maintain employment and price stability. Growth focuses expenditures on infrastructure to promote higher production and economic expansion.
This document provides an overview of a public finance course. The course aims to examine the role of the public sector in modern economies and discuss the economic rationale for government intervention. The course focuses on public expenditures, taxation, and welfare states. It will examine topics such as welfare policies, education policies, employment policies, health care policies, the effects of fiscal policy and taxation structures. References include textbooks on public economics and optional readings.
Private finance involves the management of finances at an individual level and includes savings, investments, insurance, and planning for goals like retirement. Public finance refers to the financial activities of government authorities and includes revenue, expenditure, debt, budgets, and how government spending impacts the economy. The main objectives of private finance are maximizing profit, while public finance aims to promote overall welfare. Private finances are kept private while public finances must be transparent.
Financial administration refers to activities related to generating, regulating, and distributing monetary resources for public organizations. It has traditionally been viewed as managing funds, but now is seen more broadly as part of overall management. The scope of financial administration includes financial planning, budgeting, resource mobilization, investment decisions, expenditure control, and accounting/auditing. It plays an important role in modern governments by influencing socioeconomic policies through fiscal tools.
Macro-economic Framework in Indian Economy–Public Financeviveksangwan007
The document discusses the macroeconomic framework in the Indian economy and public finance. It defines public finance as the study of the role of government in the economy. The macroeconomic framework statement presented to Parliament contains an assessment of GDP growth, fiscal balance, and external sector balance. It also covers agriculture, industry, banking, and future economic prospects. Public finance involves government revenue from taxes and other sources, expenditures, deficit/surplus, and national debt. The functions of public finance include allocation of resources, distribution of income, and economic stabilization. Career opportunities in public finance include investment banking, research, and academia.
Public finance deals with the income and expenditures of governments to provide public services and utilities. Private finance involves the management of income, expenses, borrowing, and finances by individuals and private entities to maximize profit or fulfill personal interests. Some key differences are that public finance budgets are fixed while private budgets are flexible, public finances are transparent while private finances can be kept secret, and public finance focuses on long-term planning versus private finance's shorter-term focus.
Madhya Pradesh has a long and diverse history, having been ruled by many empires and dynasties over the centuries. This included the Mauryan Empire, the Mughals, and later the British. During the rule of the Mughals, the famous musician Tansen hailed from Madhya Pradesh and served at the court of Emperor Akbar. Madhya Pradesh is also the birthplace of the renowned poet Kalidasa. After independence, Madhya Pradesh was formed in 1956 by merging several princely states and provinces. Chhattisgarh was later carved out as a separate state in 2000.
Capital expenditures, or CapEx, refer to funds used by a company to acquire or upgrade physical assets such as property, buildings, equipment, and technology that are used in the company's operations. Some examples of CapEx include purchasing land, buildings, machinery, vehicles, software, and intangible assets. Making wise CapEx decisions is important for a company's short-term and long-term financial health. There are two main types of CapEx - those for maintaining current operations and those that enable future growth. Capital expenditures are significant financial commitments that are difficult to reverse and have long-term effects on a company's production and activities.
The document discusses several types of taxes administered by the central government in India. It describes customs duties levied on imported and exported goods, excise duties imposed on domestically manufactured goods, gift tax on gifts over 50,000 rupees, service tax charged on certain services, wealth tax of 1% on net wealth over 15 lakhs, and income tax. It provides details on tax rates and exemptions for each type of tax.
This document outlines the syllabus for a public finance course. It covers 5 units: (1) introduction to public finance; (2) sources of public funds through taxes and loans; (3) principles of public expenditure and debt; (4) public finance in India; and (5) financial institutions and budgeting. Key concepts discussed include the principle of maximum social advantage, sources of revenue for central and state governments in India, and the roles of the central/union and state governments in public finance.
This document outlines the syllabus for a BBA course on project management. The syllabus covers topics such as generating and screening project ideas, market demand analysis, social cost-benefit analysis, multiple project constraints, project financing in India, and environmental appraisal of projects. It provides context on the history and definition of project management, noting that it dates back to the 1950s but has roots in the late 19th century. Project management is defined as coordinating work across departments using tools like work breakdown structures and charts to track tasks and reduce risk. A project goes through six defined phases from initiation to closure.
Project ideas are generated based on consumer needs, market demand, available resources, and technology. Ideas are also influenced by external factors like natural calamities and political considerations. The selection process evaluates ideas based on their profitability, feasibility, required resources, and market acceptance. Key tasks in generating and screening project ideas include monitoring the environment, corporate appraisals, preliminary screening, and using a project rating index to evaluate sources of positive net present value. Ideas are further screened using criteria like identified customer needs, required improvements, benefits to the target market, technical feasibility, profitability, and fit within the business objectives.
The document discusses various sources of public finance including taxes, loans, grants, and aid. It provides details on the following:
1) Grants are financial aid awarded by the government for a specific purpose and do not need to be repaid, while loans are provided by banks and financial institutions and must be repaid with interest.
2) Getting a government grant is a competitive process that requires a complex application describing how funds will benefit the community, and often requires hiring professional help to write proposals.
3) The main difference between grants and loans is that grants do not require repayment, making them a gift, while loans must be repaid and involve taking on debt. Grants have no risk of
Project ideas are generated based on consumer needs, market demand, available resources, and technology. Ideas are also influenced by external factors like natural calamities and political considerations. The selection process evaluates ideas based on their profitability, feasibility, required resources, and market acceptance. Key tasks in generating and screening project ideas include monitoring the business environment, looking for opportunities, performing preliminary screening using a project rating index, and assessing sources of positive net present value. Shortlisted ideas are then evaluated against criteria such as identified customer needs, technical feasibility, required research and development, profit potential, market fit, and resource requirements.
Directing is the core management function that integrates and initiates individual efforts to achieve organizational objectives. It provides guidance from top managers to subordinates through orders, instructions, and leadership. Effective directing techniques include clear communication, appropriate supervision styles based on the situation, and motivating employees by harmonizing individual and organizational goals. Direction facilitates change management and allows organizations to utilize each individual's full potential through guidance and counseling from superiors.
The document provides an overview of business, commerce, industry, and forms of business organization. It defines key terms and concepts. Business is defined as an activity aimed at earning profits through the production and exchange of goods and services. Commerce facilitates exchange between producers and consumers. Industry involves the production of goods utilizing natural resources. There are various forms of business organization including sole proprietorships, partnerships, companies, and cooperatives. The choice of organization depends on factors like the nature of business, required capital, risk tolerance, and regulatory environment.
1. Management by Objectives (MBO) is a technique where managers and employees jointly set goals for a specific timeframe and work together to monitor progress.
2. The MBO process involves employees' managers informing them of organizational objectives and strategies, then employees setting their own goals for how they can contribute within a set timeframe.
3. Continuous monitoring of performance and progress against objectives is essential to the MBO process, as is regular feedback and periodic formal performance reviews between managers and employees.
1. Decision making involves identifying problems, gathering relevant information, identifying alternatives, weighing the evidence, choosing among alternatives, taking action, and reviewing the decision. It is a continuous process that aims to solve problems and meet goals.
2. Effective communication of decisions and participation in decision making from concerned individuals can improve the decision making process. Decisions must be clearly conveyed and input should be gathered from those affected.
3. There are various types of decisions including programmed vs non-programmed, organizational vs personal, major vs minor, and individual vs group decisions. Different decision types are handled differently within an organization.
Approaches of Management(Principles of Management)Drneetu2
The systems approach views an organization as a set of interconnected sub-systems that work together towards common objectives. It focuses on internal processes and interdependencies between sub-units. In contrast, the contingency approach emphasizes that there is no universal solution and the best approach depends on external environmental factors and internal contingencies facing each unique organization. It rejects applying classical management principles without considering situational factors.
Management is essential for any organization to be efficient and achieve its goals. It involves planning, organizing, leading and controlling. Management integrates human, physical and financial resources to achieve organizational goals through a continuous and group process. Management occurs at three levels - top level sets goals and policies, middle level executes plans and coordinates activities, and lower level focuses on supervision and operations like assigning tasks, guiding workers, and maintaining productivity and relations.
5 Tips for Creating Standard Financial ReportsEasyReports
Well-crafted financial reports serve as vital tools for decision-making and transparency within an organization. By following the undermentioned tips, you can create standardized financial reports that effectively communicate your company's financial health and performance to stakeholders.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Economic Risk Factor Update: June 2024 [SlideShare]Commonwealth
May’s reports showed signs of continued economic growth, said Sam Millette, director, fixed income, in his latest Economic Risk Factor Update.
For more market updates, subscribe to The Independent Market Observer at https://blog.commonwealth.com/independent-market-observer.
[4:55 p.m.] Bryan Oates
OJPs are becoming a critical resource for policy-makers and researchers who study the labour market. LMIC continues to work with Vicinity Jobs’ data on OJPs, which can be explored in our Canadian Job Trends Dashboard. Valuable insights have been gained through our analysis of OJP data, including LMIC research lead
Suzanne Spiteri’s recent report on improving the quality and accessibility of job postings to reduce employment barriers for neurodivergent people.
Decoding job postings: Improving accessibility for neurodivergent job seekers
Improving the quality and accessibility of job postings is one way to reduce employment barriers for neurodivergent people.
Vicinity Jobs’ data includes more than three million 2023 OJPs and thousands of skills. Most skills appear in less than 0.02% of job postings, so most postings rely on a small subset of commonly used terms, like teamwork.
Laura Adkins-Hackett, Economist, LMIC, and Sukriti Trehan, Data Scientist, LMIC, presented their research exploring trends in the skills listed in OJPs to develop a deeper understanding of in-demand skills. This research project uses pointwise mutual information and other methods to extract more information about common skills from the relationships between skills, occupations and regions.
Abhay Bhutada, the Managing Director of Poonawalla Fincorp Limited, is an accomplished leader with over 15 years of experience in commercial and retail lending. A Qualified Chartered Accountant, he has been pivotal in leveraging technology to enhance financial services. Starting his career at Bank of India, he later founded TAB Capital Limited and co-founded Poonawalla Finance Private Limited, emphasizing digital lending. Under his leadership, Poonawalla Fincorp achieved a 'AAA' credit rating, integrating acquisitions and emphasizing corporate governance. Actively involved in industry forums and CSR initiatives, Abhay has been recognized with awards like "Young Entrepreneur of India 2017" and "40 under 40 Most Influential Leader for 2020-21." Personally, he values mindfulness, enjoys gardening, yoga, and sees every day as an opportunity for growth and improvement.
BONKMILLON Unleashes Its Bonkers Potential on Solana.pdfcoingabbar
Introducing BONKMILLON - The Most Bonkers Meme Coin Yet
Let's be real for a second – the world of meme coins can feel like a bit of a circus at times. Every other day, there's a new token promising to take you "to the moon" or offering some groundbreaking utility that'll change the game forever. But how many of them actually deliver on that hype?
Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...AntoniaOwensDetwiler
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
3. Why to study Public finance?
Public finance can be defined as the study of
government activities, which may include spending,
deficits and taxation. The goals of public finance are
to recognize when, how and why the government
should intervene in the current economy, and also
understand the possible outcomes of making changes
in the market.
4. Public Finance
Applied Economics group
Syllabus
Unit 1- Public finance- Meaning, nature ,Scope and importance, Difference b/w
Public and Private finance, Principle of maximum social advantage, Role of state in
public finance, central and state relationship.
Unit 2- Sources of : taxes, loan,grants,aid-meaning,and types of canons of taxation,
problems of justice in taxation, incidence of taxation, taxable capacity ,impact of
taxation, and tax evasion,charateristic of indian tax systems , defects and steps of
reform
Unit-3 Principle of public expenditure ,principle of public debt and its methods of
redemption.
Effects of public expenditure on production and distribution. Public debt in India ,
debt to GDP ratio,impotance subsidies
Unit -4 Public finance in India :sources of revenue of central and state govt.,
concepts and types of budgets, fiscal deficit ,financing and deficit budgeting
,introduction of fiscal responsibility and budget management act.
Unit -5 Financial institution and marketing : role of RBI, stock exchange, recent
development in financial market, constitution and function of finance
commission, recommendation of latest finance commission, latest budget of
central and mp govt.., main heads of revenue and expenditure of central state govt.
5.
6. In public finance we study the finances of the
Government. Thus, public finance deals with the
question how the Government raises its resources to
meet its ever-rising expenditure. As Dalton puts it,”
public finance is “concerned with the income and
expenditure of public authorities and with the
adjustment of one to the other.”
The objectives of public finance are achieved by
managing and drafting policies pertaining to key areas
such as taxation, management of public revenue and
expenditure, raising and servicing public debt, fiscal
administration at various levels.
7. Public finance is required at all social levels
considering different levels of government,
management and analysis with an eye on key focus
areas:
Financial Management
Revenue Management
Expenditure Management
Fiscal Policy Amendments
Regulatory Changes
Public Debt Management
9. Nature
Public Finance as a science as well as an art
Studies Govt. Finance
It studies about public debt
It talks about the economic condition of the country or economy
Scope of Public finance
1. Public revenue
2. Public Expenditure
3. Public debt
4. Financial Administration
5. Economic Stabilization
10. Difference b/w Public and Private finance
1. Income and expenditure Adjustment in Public and Private finance: the
govt. adjusts the income according to the expenditure budget. The private
sector including individuals and private business adjust their expenditure
according to the income or future estimates.
2. Borrowings in public VS Private finance: The Govt. can borrow from itself
,it can simply go back to the people to ask for loans in whichever financial
asset e.g. bonds, when shortages arise. But individual can’t borrow from itself.
3.Currency ownerships in Public VS Private Finance: The Govt. in change
aspects related to currency. This involves the creation, distribution and
monitoring. But no one in private sector is allowed to create currency, this is
illegal.
4. Present VS Future: The public sector is more involved with future planning
and making long term decisions. These decisions (investments)could includes
building of schools, hospitals etc. But Private sector is involved in making
short and mid term decisions.
11. 5. Objective difference in Public and Private Finance: The public sector’s
main objective is to create social benefit in the economy. Whereas Privet industry
seeks to maximize on personal or profit benefits.
6. Coercion to get revenue: The Govt. can use force to get revenue from
individuals. But Private sector does not have this authority.
7. Ability to make Huge and Deliberate changes: The Public finance has the
ability to make huge decisions on income amount, whereas private sector can
not.
8. Surplus Budget concept: Excess income or surplus budget is a great virtue in
the Private sector, this is however not the case in Public sector.
12. Helps In Removing Inequalities In Terms Of Wealth And Income
Helps In Controlling Inflation & Deflation
Helps In Attaining Economic Stability
Helps In Developing Well Structure & Infrastructure
Helps In Increasing Export
Helps In Encouraging Savings & Investment
Helps In Allocating Resources Properly & Efficiently
Helps In Bringing Balanced Development In The
Economy
Importance of Public Finance