Sunday, June 9, 2013


Man and women were the first were creation of god. It is said that woman was created for the companion of man. This trend is the same still among human beings. Man and woman are companions to each other. However, this is the man who considers woman as inferior race. Man dominates woman. Men wrong are excused, but wrongs done by women are hardly excused. Most important role of woman has been ever considered as housewife. She takes care of her family.
Nevertheless, status of women is changing all the time. She has obtained her position at home as well as outside. She works outside in an office or working place like industry. She can earn money and support the family. We can see that a woman can work more than man. Besides education has made women much forward. Education has made her much more conscious. This, in turn, has brought a great changed in her economics, social-cultural, political and legal status.
Law has been made for provision of share of father property if she remains unmarried. Certain number of seats has been preserved in parliamentary election and also in election of local bodies. To sum up, I believe that economic, social-cultural, political and legal status of woman is ever changing in Nepal.


Public finance is often is called as government finance. It is related to the management of government income and experiment as well as financial administration and control in the line of resources allocation.
Importance of Public Finance
Public finance is regarded as the most useful and powerful tool of public authority to accelerate and direct the course of economic development of a nation. It aims to maintain economics stability, ensures economic equality and social justice, removes economic maladies and stimulates healthy economic growth in an economy.
1)    To develop agricultural and industrial production by implementing subsidies tax and credit policies.
2)    To minimize disparity in living standard between rich and poor.
3)    To maintain Economic and price stability.
4)    To accelerate the course of economics development.
5)    To achieve favorable balance of trade and payment.

Public revenue
Pubic revenue means income of a government from various sources. In the early days of human civilization, the role of government was limited.
A government of 21st century has it perform socio-economic function to establish economics stability, to attain high economic growth and to maintain law and order in the country. In order to carry out these types of functions, it has to collect large amount of revenue from sources.


Public Enterprises refer to government business organization where there is at least 51% of shares of government. Their objective is to provide basic necessities such as water, electricity, and services such as health education etc to the people. Those are the duties of a welfare state.
Nepal bank limited is established in 1937 is regarded as the first modern public enterprise. There is all together 37 public enterprises in Nepal. The objectives of public enterprises are given below
1)    To achieve economic development in balanced and organized manner by providing basics infrastructures.
2)    To distribute consumption goods reasonable price by improving its quality.
3)    To established large and nonprofit oriented organizations which are beyond the capacity of private sector.
4)    To help generate national revenue.
5)    To earn foreign exchange.
6)    To generate the employment opportunities.
7)    To obtain economic, political and social objectives of the nation by mobilizing available capital and labor resources.    

  The importance of public enterprises is very high in developing countries likes Nepal. The private sector does not have huge resources and does not want to take higher risks. The established of  enterprises can help in creating a strong foundation for modern industries economy and help the country in achieving self sufficiency in industrial  and technical know how.


The bank can be classified into following type
1)    Commercial Bank
       The commercial bank is the oldest type of bank. In general, the term is used to mean a commercial bank. The main objective of this bank is to earn profit. This types of bank was initially established to provide short-term loans to the traders. Hence, this bank is called commercial bank. Nepal bank ltd is Nepal first commercial bank. Now there are 32 commercial banks in Nepal.
2)    Central Bank
         A central bank is established in every country. This bank is established under complete government ownership.
The main function of its to issues notes and coins. Nepal Rastra Bank established in 1956 is the central bank of Nepal. The main function functions of a central bank is to issues notes and coins.
3)    Agriculture bank
          The bank established for the development and modernization of agriculture sector is called agricultural bank. Since, it is established as specialised institution for the development of agriculture, it is also known as development bank.
4)    Development Bank
          Banks established for the development of agriculture, industry, tourism, and mining are known as development banks. In Nepal separate development banks have been established in the private sector since 1998.

Primary function of commercial bank

Commercial banks accept deposits from customers in from customers in fixed, saving and current account and provide credit under the headings of cash credit, overdraft, loan and discounting bills of exchanged.
Secondary functions
Secondary function is also known as agency function which comprises collection of credit instruments, income receiving and payment, purchase and sale of securities, trustee and attorney and remittance of money.
Contingent functions
The contingent functions of commercial bank are also known as incidental or general utility functions which comprises safety of valuable goods, such as gold, diamond and valuable document, issues the credits instrument such as letter of credit traveler cheques etc .
Capital market
Capital market is a mechanism through which long term funds are loaned and borrowed in trade, commerce and industrial sector. Long term securities such as bonds, shares and debentures are traded in capital market. Generally, capital market provides loan facility to the business sector for more than one year.
Money market
Money market is a mechanism through which short term funds are loaned and borrowed in trade, commerce and industrial sector. IT refer  to the activities of financial institutions to meet the  demand and supply of money for the specified period.


The role of banking system in the economy can be explained under the following headings.
1)    Mobilisation of savings
         The banks encourage thriftiness and save more among people. The men can be free of the future anxity when do not have income on account of savings.
2)    Capital Formation
          The capital formation is crucial for the economic development of a country. The less developed countries likes Nepal are suffering from low capital formation. The bank collects idle money from people.
3)    Promotion of Employment
          The unemployment  is a serious problem, which may result into severe social political and economic consequences. In Nepal, pressure of population on land is high. A large share of labour force is unemployed and under employed. The bank helps to relieve the economy from the pressure of unemployent. The banks provides loans to business, entrepreneurs and farmer in different forms.
4)    Upliftment of poor

           The banks make available loans to rural people on reasonable rate of interest. This helps farmers to understand agricultural and non agricultural  works. The small farmer development project, small sectors development programme, small and cottage industries project, micro credit project have been implement by agricultural development bank and commercial bank in Nepal for the upliftment of the poor.

Function of central bank

The function of central bank is given below
1)    Monopoly of notes issue
2)    Government bank
3)    Bankers bank
4)    Lender of the last resort
5)    Clearing house function
6)    Control of credit
7)    Development function

Monopoly of notes issue
                 The central bank is given the monopoly right to issue the note in every country. Central bank issues all together 11 types of notes.
At present, central bank issues coin also. The notes are issues against the fixed %reserve of gold, silver and foreign currency so as to check the over issues of paper money.

Government bank
              The central bank works as the banker, agent and advisor of the government. The bank provides banking services to the government as the services provided by commercial bank people. The bank maintains government account.

Banker of bank
            The central bank works as the banker of other banks. The rights of supervision, control on other banks for the sound development of the banking system in the country lies with central bank. The commercial bank have account in central bank.