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Activity 2

The study of public finance is crucial as it involves managing the government's resources, which are sourced from taxes, loans, and aid. Key goals include efficient resource allocation, equitable income distribution, and macroeconomic stabilization, ensuring funds are directed to meet citizens' needs. Citizens play a vital role in overseeing the planning, budgeting, and distribution of public finances to promote transparency and accountability.

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22 views1 page

Activity 2

The study of public finance is crucial as it involves managing the government's resources, which are sourced from taxes, loans, and aid. Key goals include efficient resource allocation, equitable income distribution, and macroeconomic stabilization, ensuring funds are directed to meet citizens' needs. Citizens play a vital role in overseeing the planning, budgeting, and distribution of public finances to promote transparency and accountability.

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gel cada
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We take content rights seriously. If you suspect this is your content, claim it here.
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Importance to study public finance.

Government is comparable to a family only a bigger one, and every citizen is a part and it needs
is a concern of the government.

On the providing of the needs of the country men, identifying the fund resource is important,
wherein tax, loans and aids from donors and multilateral agencies are the main sources of its
funds. Therefore, citizens had a responsibility to look over on the distribution and allocation of
the funds for the identified expenditures- services and programs.

Moreover, the main goals of Public Finance Management specifically efficiently Allocation of
Resources, Equitable Income Distribution, and Macroeconomic Stabilization. The first goal is
the allocation of resources; as mention: tax, loans, aids from donors, and multilateral agencies
are the sources of funds for public serves and programs are limited. So, it is obligatory to identify
“where” it is assigned and “when” it is disseminated particular on the most significant needs of
the people. Second is the equitable income distribution, this goal accomplishes to the dispersal
of funds to different sectors of the government depends on the expenditures needs. Lastly, the
goal serves as the guaranteeing the steadiness of the whole economy of the country or known as
macroeconomic stabilization.

In general, public finance management is the administration of public finances that every citizen
has a part on supervising from the start of planning, budgeting, distribution for expenditure, and
performance assessment. In this way it helps to monitor the liquidity and transparency of the
distribution of the funds, as the citizen are part of resourcing the funds.

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