Meaning,Nature and Scope of Public Finance

Posted on Apr 26 2016 - 8:59am by Preeti


Meaning & Scope of Public Finance

 

Meaning of Public Finance

The word public refers to general people and the word finance means resources.So public finance means resources of the masses,how they are collected and utilized.Thus, Public Finance is the branch of economics that studies the taxing and spending activities of government.The discipline of public finance describes and analyses government services,subsidies and welfare payments,and the methods by which the expenditures to these ends are covered through taxation,borrowing,foreign aid and the creation of money.

 

Definition

According to  Findlay Shirras

“Public finance is the study of principles underlying the spending and raising of funds by public authorities”.

According to H.L Lutz

“Public finance deals with the provision,custody and discursement of resources needed for conduct of public or government function.”

According to  Hugh Dalton

“Public finance is concerned with the income and expenditure of public authorities,and with the adjustment of the one to the other.

Nature of Public Finance

Nature of public finance implies whether it is a science or art or both.

Public Finance as Science

Science is the systematic study of any subject which studies relationship between facts. Public finance has been held as science which deals with the income and expenditure of the government’s finance.It studies the relationship between facts relating to revenue and expenditure of the government.

Arguments in support of Public Finance as Science:

  • Public finance is systematic study of the facts and principles relating to government expenditure and revenue.
  • Principles of Public finance are empirical.
  • Public finance is studied by the use of scientific methods.
  • Public finance is concerned with definite and limited field of human knowledge.

Public Finance as Art

Art is application of knowledge for achieving definite objectives. Fiscal Policy which is an important instrument of public finance makes use of the knowledge of government’s revenue and expenditure to achieve the objectives of full employment, economic development and equality. Price stability etc. To achieve the goal of economic equality taxes are levied which are likely to be opposed. Therefore it is important to plan their timing and volume. The process of levying tax is therefore an art. Study of Public finance is helpful in solving many practical problems. Public finance is therefore an art also.

From the above discussion it can be concluded that public finance is both science and art. It is positive science as well as normative science.

It is  a positive  science as by the study of public finance factual information about the problems of government’s revenue and expenditure can be known. It also offers suggestions in this respect.

It is also normative science as study of public finance presents norms or standards of the government’s financial operations . It reveals what should be the quantum of taxes,kind of taxes and on what items less of public expenditure can be incurred.

(Visited 96,287 times, 8 visits today)

Pages: 1 2
About the Author

B.Tech Biotechnology,MBA(HR and Marketing), UGC/CBSE NET Qualified

25 Comments so far. Feel free to join this conversation.

  1. jimi divo August 17, 2016 at 2:39 pm - Reply

    waooo yo work was good dia ,it will help me iin research and in coursework

    • Preeti December 27, 2016 at 9:07 am - Reply

      Thanks 🙂

  2. Malam Malah December 25, 2016 at 8:12 pm - Reply

    I like it. Its simple, comprehensive and research oriented

    • Preeti December 27, 2016 at 9:07 am - Reply

      Thanks 🙂

  3. Daneil January 31, 2017 at 4:07 pm - Reply

    Thanks a lot, this is candid

  4. Ezeh kings March 26, 2017 at 2:35 pm - Reply

    Thanks for your short note but comprehensive

  5. Avinash Kulkarni May 8, 2017 at 12:47 am - Reply

    Thank you so Much for this fantastic work. Indeed it is simply notes.😃

  6. Chetan May 26, 2017 at 10:36 am - Reply

    Thnx fr this simple comprehensive notes.. This is really helpful

  7. Manisha kaushik May 27, 2017 at 7:35 pm - Reply

    you r a life saver 😁

  8. Nizam deen June 15, 2017 at 10:33 pm - Reply

    Thanks alot, this notes is very helpful,and understandable.

  9. Ashfaq July 9, 2017 at 3:46 pm - Reply

    so easy and simple notes really nice work

  10. Mary James Nyirenda August 8, 2017 at 3:58 pm - Reply

    Thank you so much for your simple and to the point notes😁😇

  11. krisna September 30, 2017 at 2:15 am - Reply

    THANKS for the simple notes

  12. Rakesh October 6, 2017 at 6:05 pm - Reply

    Plz ….share a notes on the topic”use of biotechnoly in field of medical science.agriculture.breading.environment conservation”……

  13. Amir Jamal Said November 9, 2017 at 1:01 pm - Reply

    thank u so much for your efforts.

  14. Macquin Khakame Wambaya. November 30, 2017 at 8:14 am - Reply

    Very comprehensive,research oriented and academic.God bless you.

  15. Stepman Kiveu Samuel January 19, 2018 at 9:55 am - Reply

    You are just a great teacher. I love the way you have expressed your points systematically

  16. jamil yusuf January 19, 2018 at 8:54 pm - Reply

    very very impressive it will help me alot pls can u add more

  17. Jitendra rana January 31, 2018 at 2:38 pm - Reply

    Thank you so much for your simple point to be note

  18. Manisha April 11, 2018 at 11:15 am - Reply

    Thank you So much! … really helpful ..very easy ND accurate with exam point of view

  19. Priti September 16, 2018 at 5:29 am - Reply

    So well written!!🙏….thanks a ton…

  20. iptv app October 6, 2018 at 4:17 pm - Reply

    Hello,nice share.

  21. Gift November 26, 2018 at 9:37 am - Reply

    Thanks alot is simple and very easy to understand.

  22. Akriti Upadhyay August 30, 2019 at 2:17 pm - Reply

    It’s very useful and helpfull

Leave A Response