This document provides an overview of public finance including its key concepts and components. Public finance is the study of government expenditures and revenues. It examines how governments finance their spending and the institutions and processes involved. The key elements of public finance are government overhead, public revenues, and the general budget. Public expenditures must be cash payments by a public entity to achieve a public benefit. They are subject to rules of utility, economy, and legal authorization. Expenditures can be classified as ordinary/extraordinary and real/transformative based on periodicity, recurrence, and purpose.

1. Public finance
an overview Public finance
Public Finance
It is the study of the financial activities of governments and public
authorities.
It describes and analyzes the expenditures of government and the
techniques used by governments to finance its expenditure.
It interest in studying the institution and decision making process that
help mold the observed behavior of people acting through government.
It deals with the economic role of government as a response to market
failures.
 its limitation in responding to such failures, the design and evaluation of
expenditure and tax program, and short & long term consequences of the
deficit in the economy

2. Definition of public finance:
The financial activity of the state to spend what it is
obtained from the revenues and balance between them.
-------------------------------------------------------------------Elements of public finance:
1.overhead.
2. Public revenues.
3- General Budget

3. The definition of public expenditure:
Its amount of cash spending by someone to achieve a
public benefit: the public person submit to
administrative law and constitutional law.
-----------------------------------------------------------Overhead elements
Elements alimony
1. Cash money
2. Spending by Public person .
3. achieving a public benefit to the community
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4. 1.Why public expenditures are paid as cash
money?
Because of the useful and helpful of the
monetary like:
A. It do the job of exchanging between the
people in the economic markets.
B. Measure unit and accounting unit.
C. Astor of value.
D. Its used as delayed payment.
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5. 2.Why public expenditures are Spending by Public
person?
Requires carrying out public spending expenditures to
be issued by a public (state).
3. Why public expenditures are achieving a public
benefit to the community?
Adopt this standard to be ownership of the money
spent owned by the state or any of its public or in other
words, that the state is controlling them and
controlling the routing of directors in accordance with
applicable laws, namely the adoption of public
spending on the laws and administrative decisions and
target through its activities in the public interest.

6. The general rules of expenditures:
1. Utility Rule:
public expenditure tend to achieve the greatest
benefit at the lowest possible cost.
2. Economy Rule:
The base of the economy is one of public
spending rules, any move away from
overspending unjustified.
3. License Rule:
That public expenditure is subject to license
from the base before the legislature, and are
subject to all kinds of censorship
(Administrative Control, External control,
Control legislation, ……… etc).

7. Types of public expenditures
1. Terms of periodicity and recurrence is divided
into:
A. Ordinary expenses (such as the cost of the state
expenses that recur every month and every year
B. .Extraordinary expenses. (Such as the cost of wars and
natural disasters which do not recur every year).

8. 2. From where the service is divided into:
A. Real expenditure, which is (productive expenses
such as spending on the construction of factories).
B. A transformative expenditures (non-productive
expenditure, but rather designed to convert part of the
purchasing power of the members of the community
part to another part.