1.

Public Finance is the branch of economics that studies the taxing and spending
activities of government. The term is something of a misnomer, because the fundamental issues are not
financial (that is, relating to money). Rather, the key problems relate to the use of real resources. For
this reason, some practitioners prefer the label public sector economics or simply public economics.
Public finance encompasses both positive and normative analysis. Positive analysis deals with issues of
cause and effect, for example, “If the government cuts the tax rate on gasoline, what will be the effect
on gasoline consumption. Normative analysis deals with ethical issues, for example, “Is it fairer to tax
income or consumption. Modern public finance focuses on the microeconomic functions of government,
how the government does and should affect the allocation of resources and the distribution of income.
For the most part, the macroeconomic functions of government--the use of taxing, spending, and
monetary policies to affect the overall level of unemployment and the price level--are covered in other
fields. It also important Public finance is crucial for the development of a nation as it deals with taxation
and expenditure of different civic organizations. It plays a vital role in acquiring the financial resources
needed by an economy to achieve its social welfare. Some of them are revenue, expenditure, public
sector deficit, etc. Because the role of Public finance is the branch that deals with the government's
revenue and expenditure. Public Finance plays an essential role in stabilizing the supply, allocating the
resources, and distribution and development of the state. The government uses the revenues and
expenditures of itself in order to reduce inequality. If there is high disparity it imposes more taxes on
income, profit and properties of rich people and on the goods they consume. The money collected is
used for the benefit of poor people through subsidies, allowance, and other types of direct and indirect
benefits to them. The government finance is important for proper utilization of natural, man made and
human resources. For it, on the production and sales of less desirable goods, the government imposes
more taxes and provides subsidies or imposes taxes lightly on more desirable goods. And the
Government finance is important to achieve sustainable high economic growth rate. The government
uses the fiscal tools in order to bring increase in both aggregate demand and aggregate supply. The tools
are taxes, public debt, and public expenditure and so on. The government uses the public finance in
order to overcome form inflation and deflation. During inflation, it reduces the indirect taxes and genera
expenditures but increases direct taxes and capital expenditure. It collects internal public debt and
mobilizes for investment. In case of deflation, the policy is just reversed. The government uses the
revenues and expenditures in order to erase the gap between urban and rural and agricultural and
industrial sectors. For it, the government allocates the budget for infrastructural development in rural
areas and direct economic benefits to the rural people. The government promotes the export imposing
less tax or exempting from the taxes or providing subsidies to the export oriented goods. It may supply
the inputs at the subsidized prices. It imposes more taxes on imports and so on. So the government
collects revenues and spends for the construction of infrastructures. It has to keep peace, justice and
security too. It has to bring socio-economic reformation too. For all these things it uses the revenues and
expenditures as fiscal tools.

2.

A. Revenue collection is refers to a billing public or a member of the public for fines, taxes or any other
fees. However, revenue collection is also the general collection of revenue for debts owed or owed
revenue by persons or businesses. It is also essential for businesses as a means to collect revenue for
any kind of owed asset. Anyone or anything that is owed money needs revenue collection means
collecting outstanding financial obligations from the public. Those financial obligations can come in a
variety of sources—taxes, license fees, fines or use of state facilities. On our government expenditure
refers to the purchase of goods and services, which include public consumption and public investment,
and transfer payments consisting of income transfers (pensions, social benefits) and capital transfer.

B. A tax is a compulsory contribution mandated by law and exacted by the government for a public
purpose. The major tax collecting agencies of the national government are the Bureau of Internal
Revenue and the Bureau of Customs. Assessment and collection of all national internal revenue taxes,
fees and charges. Enforcement of all forfeitures, penalties, fines and execution of judgments in all cases
decided in its favor by the Court of Tax Appeals and the ordinary courts.

C. “Resource distribution among programs is perhaps the least technical part of the budget process.
With the exception of investment projects, spending decisions are rarely based on technical principles or
on detailed work to determine the population’s preference. The allocation of funds results from a series
of forces that converge at different points of the decision-making process, with an arbitrator who ruled
according to an imperfect perception of present and future political realities. The ministries, the
headquarters of the principal agencies, and many other decision-making positions are occupied by
politicians who, theoretically, have developed a certain intuition about what people want. In any event,
the effort made at this stage of the budget process to collect and analyze information is less than at any
other stage.

d. is the sum of government expenditures on final goods and services. It includes salaries of public
servants, purchase of weapons for the military, and any investment expenditure by a government. It
does not include any transfer payments, such as social security or unemployment benefits.

e. For now I can say that the main causes of our public finance is due to the Coronavirus(COVID-19) On
the health front, many countries are adopting differentiated territorial approaches, for example on
policies surrounding because everyone has to wear a face mask, face shield and they have also need
lockdown just to protect us from the coronavirus. But all the students like me are already affected by
the coronavirus and also the people have businesses, because of the lockdown they can’t do run there
business or making market’s there products due to (Covid-19).