Public Finance
1️⃣ Meaning of Public Finance
Public finance refers to the study of how the government collects revenue, spends
money, and manages public funds to achieve economic and social goals.
It deals with government income and expenditure.
2️⃣ Components of Public Finance
Public finance mainly includes three parts:
1. Public Revenue
2. Public Expenditure
3. Public Debt
4. Budget
A) Public Revenue
1️⃣ Meaning
Public revenue refers to the income or money received by the government.
2️⃣ Sources of Public Revenue
Taxes:
● Direct Taxes (paid directly by individuals or firms)
Examples: Income Tax, Corporate Tax, Property Tax
● Indirect Taxes (paid through goods and services)
Examples: GST, Excise Duty, Customs Duty
Non-tax Revenue:
● Fees, fines, penalties
● Interest from loans
● Profits from government enterprises
1️⃣ Meaning of Public Finance
Public finance refers to the study of how the government collects revenue, spends
money, and manages public funds to achieve economic and social goals.
It deals with government income and expenditure.
2️⃣ Components of Public Finance
Public finance mainly includes three parts:
1. Public Revenue
2. Public Expenditure
3. Public Debt
4. Budget
A) Public Revenue
1️⃣ Meaning
Public revenue refers to the income or money received by the government.
2️⃣ Sources of Public Revenue
Taxes:
● Direct Taxes (paid directly by individuals or firms)
Examples: Income Tax, Corporate Tax, Property Tax
● Indirect Taxes (paid through goods and services)
Examples: GST, Excise Duty, Customs Duty
Non-tax Revenue:
● Fees, fines, penalties
● Interest from loans
● Profits from government enterprises
