Are you a student? Want to know about the importance of public finance? Then this blog is going to be apt for you; in this blog our assignment help experts will guide you regarding public finance in a detailed way. I hope it will be helpful to understand it properly.
Before knowing the importance of public finance, we need to know what public finance is actually. In simple sense public finance is the way of handling the public funds of the economy of a country. It plays a significant role for the growth and development of the country. It is important for the nation to manage the stakeholders.
Everything needs money to run, a country is not exceptional in that case. To run our government and make the nation active money is collected from different sources. Government collects revenue in the form of taxes and invests the money in different sectors like education, healthcare, salaries of government employees, members of parliament, pensions etc. All the money is collected from the public and spent for the public. This money is known as public finance. Here people play a significant role in accumulating the revenue. This money is involved in every sector in which the public of the country is involved; it may be at central level and state level too. But managing the money is necessary for the safeguard of the people of a country. Based on this money, the development of the country depends. If it is utilized properly, the growth of the country’s economy will rise drastically.
What are the objectives of public finance?
- The main objective of a government is to take care of food, health, shelter, and education etc of the common people. So, the government needs to invest this public finance very carefully. Taking care of the public needs is the first priority of every government and it must be fulfilled at anyhow, besides this it must give effort for the development of the economic condition of the country.
- It generates employment among the youth.
- It aims to fulfill the basic needs of the country
- It helps to reduce the inflation rate by offering various packages and it results in the development of the country.
- It focuses on removing inequality among the mass by distributing the money among the poor as a relief.
- It controls the country’s currency value in the international market so that the nation can cope with the international market.
Public Finance is divided into various types like
- Public Expenditure – it is the type of expenditure in which money is spent in various sectors like healthcare, development of infrastructure, education, medical etc.
- Public Debt – it is the type of money which is borrowed from different organizations. When the expenditure of the country exceeds the amount of revenue collected from the public, then to run the country, the government borrows money.
- Financial Administration
- Public Revenue – it is the type of revenue that is collected from the public as a means of direct and indirect taxes, fees, fines, maintenance charge etc.
What is the significance of public finance?
Managing public finance is necessary to run our country properly. Below, we have listed some of the important factors that will help you to understand its importance.
- If the government manages the public finances properly, then it gives a surety to the people of the nation at the time of emergency and it indicates a good growth and prosperity of the country.
- It lessens the inflation rate.
- It helps to maintain the price stability.
- It boosts up the scope of employment in various sectors.
- It encourages human resources.
- It helps to invest money with the help of various packages and policies.
- It encourages the nation to cope with the situation of the advancement of these modern technologies that indicates a prosperous nation and large scale growth in economy.
- It encourages rich businessmen to invest money in various sectors so that poor people can develop their financial condition.
Note: Public finance not only indicates of managing the public money, but also managing other important factors like controlling the price hike of essential commodities, inequality of economic among the common people, human rights, development of the minority community, unemployment, distributing money equally so that rate of crime can be decreased etc. management of public finance cannot be understand in a short rage, its range is much higher than we think. Every year the government prepares a budget and through which it indicates how much money they are investing in different sectors so that the nation can get utmost growth.
Conclusion: After reading this blog I hope you will get a clear idea of what public finance is and how it is important for the growth of the nation. If still you have any query or want to know anything regarding it, you can ask our homework help experts without any hesitation. For more updates just log on to our official website GotoAssignmentHelp and check the necessary details of hiring our skilled experts. We provide various kinds of services related to assignments on different subjects. So, hire them and make your assignment superior.