Question

What is the nature of public finance?

Answer 1

Public finance refers to the management of government revenues, expenditures, and debt. It focusses on how governments raise funds (through taxes, borrowings, etc.) and how they allocate these resources to meet public needs such as infrastructure, education, health, and social welfare. The nature of public finance includes both microeconomic and macroeconomic perspectives, focussing on ensuring economic stability, equity in income distribution, and efficient allocation of resources.