What is public finance?
It is a branch of economics which deals with income and expenditure of government of a country. The function of public authorities are simply revenue raising and revenue spending for covering the cost of administration and defense in the days of early economists. But modern states have to perform various functions to promote the welfare of the people. Therefore, the public finance includes the study of financial administration as well as of financial control.
According to Professor Bastable, "public finance is a branch of economics which deals with income and expenditure of public authorities or the state and their mutual relation as also with the financial administration and control."
Public finance is used for the benefit of the people of an economy while the private finance is used for the benefit of an individual or his family. Public finance and the private finance are differentiated as under:
Difference between private and public finance: these are the differences between the private and public finance.
1: Adjustment of income and expenditure: a government first prepares an estimate of expenditure and then means to raise that sum and the individual must adjust his expenditure to his income.
2: Budgeting: the unit for the public budget is one year but an individual needs not balance his budget during a given period.
3: Deficit financing: deficit financing is a peculiar privilege of government but an individual can not do it, unless he is prepared to go behind the bars.
4: Different objectives: an individual tries to maximize his satisfaction or profit from a given amount of resources but the objective of government expenditure is to maximize social benefit.
5: Publicity of finance: budgets are published and the widest publicity is given to them. On the other hand, the secrecy surrounds individual finance.
6: Coercion: a government has to pass a law and compel the citizen to pay a tax while an individual lacks the coercive authority.
In a tabular presentation clearly distinguish between public finance and private sector finance
To my own understanding the different between public and private finance is that both are engage in activities such as buying and selling .and also production,savings,capital equalibrum,transaction.
Private finance cannot raise nonrepayable loan but the goverment can do that,
Public finance relates to the economic aspect of government, such as the business of raising and collecting taxes and borrowing money to pay for government operations. The term would normally be understood to cover all levels of government operations, from central government down to local town councils.
Private finance is everything else which relates to private individuals or companies raising, processing and spending money.
Public Finance and Private finance are both concept from economics. Public Finance deals with the payment of collective or governmental activities and the design and administration of these activities.
Public Finance deals with income distribution and social equity. Government policies can help in reallocation of incomes by transfer payment or through tax systems.
On the other hand, Private Finance is a method used by many governments to set up a public and private sector partnership. It involves privatization and deregulation. A number of projects are undertaken all around the world under this initiative. The aim of these projects is to provide infrastructure and also operational services.
Public finance is always satisfied man but private finance is only thinking his income which may be wrong or illegal.
Public finance is a the collection of tax from the provision of public goods by the government & the use of those tax funds to toward production of public goods.
Government spent money on public finance than private
Public Finance is the subject which is to examine the formation and development of he financial distribution relationship .
Public finance refers to governments finance and distributing it to the various activities of government.
Public Finance is basically a field of economics. It deals with payment of collective or governmental activities and their design. The terms Public economics and governmental finances.
Public finance helps in issues such as Taxes, Debt, Seigniorage etc. When the Private markets no longer remain efficient, then in order to remain in limelight.