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.
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.