Scope of Public Finance
SCOPE OF PUBLIC FINANCE: In order to discuss the scope of public finance we present a definition which would be helpful to determine the reality of this subject as a science. According to Prof. Taylor, "Public Finance deals with govt. Finance and govt. finance is concerned with raising govt. revenue and making expenditures. In this way, public finance is concerned with govt. Treasury. If we consider it a science, then it is a fiscal science. The names of the policies of this science are fiscal policies and the names of issues of this science are known as fiscal issues. All this means that public finance is concerned with the finance of state. The scope of public finance is extended to the followings: (1). Govt. Expenditure, (2) Govt. Revenue, (3).Public Debt, and (4).Financial Management. 1. PUBLIC REVENUES: Every govt. Has to make a lot of expenditures. For this purpose it has to raise revenues. The major share of Public revenues is obtained through taxes. Again, govt. Also raises revenue through non-revenue sources like fees and penalties. Thus in the science of Public fiance we study different types of taxes. The principles of taxation, the burden of taxes, and the system of taxes. 2. PUBLIC EXPENDITURES: The revenue which a govt. Raises have to be spent on different items. Thus in public finance we study the principles of making govt. Expenditures. Moreover, it is seen what are the major items of govt. Expenditures. Again, whether the expenditures are diverted to productive fields or non-productive fields. What will be the effects of Public expenditures on the level of income distribution and level of output. 3. PUBLIC DEBT: So often the govt. Revenue are far less than govt. Expenditures. The govt have to make the traditional as well as the welfare type expenditures. In such circumstances, the govt. Expenditures exceed govt. Revenues. Therefor, to meet the situation, govts. depend upon public debt. Thus in public