What Is Public Finance?

Public Finance is basically a term from economics. It is related with the activities of the government and the collective organizations and how they manage to pay for these activities.

The government expenses are usually on government consumption which is purchase of goods and services by the use of government, government investments which is expenditure on infrastructure and transfer payments such as payments made for social security.

These expenditures of the government are met by a number of means such as Taxation, borrowing, sales of assets etc. Now the job of Public Finance is to decide how and to what extent would each of these tools be used for meeting the expenditures.