What Is The Importance Of Public Finance?

4 Answers

Connor Sephton Profile
Connor Sephton answered
Public finance is of complete importance to people as a society and on an individual level too. Public finance refers to taxation and the policies that are put into place by the government to keep the finances of the country in check. They often fluctuate to cater for the different events and things that alter the economy out of the government's hands.

Examples of public finance are:

• Roosevelt's New Deal in which he ploughed public money and government spending into government projects to allow for more industry and, in turn, more jobs to be created. This helped the economy in the USA at the time as it got more people out of unemployment and into earning, meaning that there was increased public spending. Things like this are implemented with the current financial state of the country is in trouble.
• Tax rises and cuts are also examples of public finance methods, where the money that every working citizen must pay to be part of society is either lowered or increased, depending on the financial climate.
• Income distribution relates to the transferring of income from some groups to others. Examples of this could be public education, in which public money is ploughed into schools and teaching facilities, in order to create a better workforce for the country in the future. If natural disasters were to occur in the country, the people that are affected will be offered funding to get their lives back on track. It is basically offering money to the people that need it at certain times.
• There are also three different types of government expenditure: Government consumption, government investment and transfer payments.

There is a lot you can learn on public finance, so have a quick search on a search engine such as Google and read into the different aspects of public finance in your country.
Anonymous Profile
Anonymous answered

Public finance is important because it concerns issues such
as how government revenue( tax and non tax) will collect as well as  it
concerns  about how government expenditure (public service ,civil
servants pay ,and etc) will provide.

SidrA Tasneem Profile
SidrA Tasneem answered
The public finance is important for both developing and developed countries of world. It is overall payment of government funding and expenditure in the country. It is main issue for developing countries to gather public finance for country development.

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