PreparePublic Finance · 1 min read
Meaning & Objectives of Public Finance
Meaning of Public Finance
Public finance is simply how the government gets its money and how it uses that money for the country.
Public finance is a branch of economics that deals with how government generates its revenue and how it spends it in order to achieve its predetermined macroeconomic objectives.
It means the government studies how to make money and how to spend it to reach their goals.
Just like you or your parents work to get money to buy a car, build a house, or pay for a wedding, the government also needs money to do its work for the people.
Objectives of Public Finance
Generation of income.
Macro-economic stability.
Economic growth.
Sound fiscal policy.
Key points
- •Public finance is a branch of economics that examines government revenue generation and expenditure.
- •Governments generate revenue and spend it to achieve specific macroeconomic objectives.
- •Similar to individuals, governments have obligations to meet and must generate income to do so.
- •Key objectives of public finance include income generation, macroeconomic stability, economic growth, and sound fiscal policy.