Question

DESCRIBE THE SIGNIFICANCE OF PUBLIC FINANCE [ 4 MARKS ]

Answer 1

Answer:

Public finance is the study of the role of the government in the economy. It is the branch of economics that assesses the government revenue and government expenditure of the public authorities and the adjustment of one or the other to achieve desirable effects and avoid undesirable ones. The purview of public finance is considered to be threefold: governmental effects on efficient allocation of resources, distribution of income, and macroeconomic stabilization.

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Answer 2

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♪ Public Finance studies the way in which the government manages its income , expenditure and loans.

♪ The government's activities of mobilizing revenue , incurring expenditure are part of this.

♪ To achieve economic growth, fair distribution , maintain economic stability it is very important.

♪ The government spends the revenue collected through tax , this increase growth rate.

♪ The Money raised through borrowings for development activities.

♪ It helps in analysis and evolution of budgets.

♪ It deals with how the government raises revenues to meet its expenditure.

♪ During the inflation , Government tries to regulate the economic activities.