Public Finance DOCX

Title	Public Finance
Author	Kang Hae Na
Pages	3
File Size	232.5 KB
File Type	DOCX
Total Downloads	1
Total Views	36

Summary

Description

CHAPTER I THE ROLE AND SCOPE OF PUBLIC FINANCE Finance can be divided into two broad categories : 1.Private Finance 2.Public Finance Private Finance can be categorized into:- i. Personal Finance : It basically deals with the optimization of fnances in the individual (single consumer, family, personal savings, etc.) level subjected to the budget constraint. For example, a consumer can fnance his/her purchase of a car by taking a loan from any bank or fnancial institutions. In short, it can be said that Personal Finance is fnancial planning on the individual level. It deals with the utilization of the monetary resources by individuals and families by means of budgeting, saving and spending after taking into consideration the probable life events of the future and risks associated with them. Personal Finance generally includes :- Savings account Insurance policies Consumer Loans Stock market investments Retirement plans Managing of income taxes Credit cards ii. Business Finance : deals with the monetary provisioning at the commercial level. A business constantly requires capital based on diferent perspectives :- Short-term Medium-term Long-term Public Finance It is that part of fnance which hovers around the central question of allocation of resources subjected to the budget constraint of the government or public entities. It is that branch of economics which identifes and appraises the means and efects of the policies of the government. It is a feld of economics concerned with paying for collective or governmental activities, and with the administration and design of those activities. It tries to examine the efects and consequences of diferent types of taxation and expenditures on the economic agents (individuals, institutions, organizations, etc.) of the society and ultimately on the entire economy. It also analyzes the efectiveness of the policies aimed at certain objectives and consequently to the development of procedures and techniques for increasing the efectiveness of the policy. It borders on the feld of government and political science and it deals with many of the same problems and shares many of the techniques employed in the feld of corporate fnance but essentially it is contained within the felds of 1 " P a g e...