PUBLIC FINANCE DEFINITION AND OBJECTIVES, Public finance may simply be defined as the aspect of economics which deals with government revenue and expenditure. In other words, public finance involves the financial activities of government as they relate to revenue or income, how to establish enterprises expenditure and debt operation and their overall effect on the economy. It is seen as financial activities that concern borrowing and lending, receiving and spending by the federal, state, local governments and their agencies in order to create an impact on individuals and corporate bodies price equilibrium

Objectives of Public Finance

Revenue generation: Public finance assists the government to achieve an effective and efficient generation of revenue for the nation. Improved balance of payment: it also helps the government in ensuring favorable balance of payment. Price stabilization: this helps to ensure the stability of prices  of goods and services in order to prevent frequent fluctuations and other related issues like inflation price equilibrium Equitable distribution of income: Public financial deals also ensures that income accruing to a nation is equitably distributes to various sectors of the economy meaning of economics

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  • Good fiscal policy: Public finance is used by government to ensure that a good and acceptable fiscal policy is attained
  • Provision of employment: Public financial hub is used to create employment opportunities in the country
  • Satisfaction of needs: Pub finance is also used to determine the needs of the people, to enable government to meet those needs.

As Mr. Kola Balogun employs one labour to work on his one hectare farm, 10 tons of yam were produced. As more and more labour are employed in every successive round of production, the total output continues to increase from 10 to 30, to 60, to 120 and so on. But as the fifth (5th) labour was used or employed, there was a drop in production from 120 to 100. This is the stage at which the law of diminishing returns sets in as every additional unit of labour brings about a decrease in the total output

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