PUBLIC FINANCE

DR. HEND MORSY AL BRBRY

Firstly; true and false

1- To perform all these functions adequately and
efficiently, the government needs funds from
the private.
2- public finance refers to systematic study of
the operations of public Revenue and
expenditures of the public authorities.
3- Richard Musgrave: Public finance is an
investigation into the nature and
principles of the state revenue and
expenditure.
4- Adam smith: he subject matter of Public
finance Is logically, though not solely,
concerned with the financial aspects
of the business of the government.
5- Public finance: can be classified into two
categories the personal finance and
business finance.
6- business finance: deals with the process of
optimizing finances by individuals
such as people, families and single consumers.
7- personal finance: involves the process of
optimizing finance by business
organizations.
8- In private finance, the income must precede
expenditure.
9- In Private finance as well, the revenue has to
be raised before the expenditure can be met.
10- Both the private individuals as well as the
state have to resort to borrowing when
expenditure exceeds revenue.
11- Both the public and private finance sometimes
face the same problem. i.e. The problem of
adjustment of income and expenditure.
12- individuals first determine the volume of
expenditure that it has to incur on different
heads to perform their obligations and then
 tries to find out the resources to meet the
expenditure.
13- government first considers his income and
then determines the volume of expenditure; it
has to incur on different
heads or items of consumption.
14- The credit of a private individual is, at best,
limited and can borrow a limited sum of
Money for a limited source.
15- Private Individual can rise credit within the
economy.
16- The government enjoys a very high degree of
credit in the market and It can borrow large
amounts not only from its citizens but from
foreigners.
17- The government has a source of income which
is not available to the private individual.
18- The private individual can print notes which
are legal tender within the country and its
often resorts to the printing press to cover
the deficit in the budget engendered by war or
an economic crisis.
19- The private individual enjoys no such right of
printing the currency.
20- The government does not give as much
importance the law as a private
individual does.
21- The private individual arranges his
Expenditures in accordance with the law
Equi – Marginal Utility and it distributes his
income between consumption and savings in
such a manner as to equalize their marginal
utility.
22- deficit budget is always god for a private
Individual.
23- Surplus budget is always god for a private
Individual.
24- Surplus budget is always god for government.
25- Private Individual spend less than his income
and save something.
26- Government spends more than its income.
27- Public finance is known for its compulsory
character.
28- The private authorities cannot avoid or
postpone certain expenditure.
29- Public finance is voluntary in nature.
30- Individuals can play to postpone their
expenditure.
31- The government can use coercive methods to
collect revenue for example, government can
raise non repayable loans.
32- Private individuals can use force to get their
income and Individuals have to earn their
income by their own
efforts.
33- The budget an government is shrouded in
mystery.
34- Secrecy is maintained in budget of the private
finance.
35- The government budget there is no
secrecy is maintained.
36- In a democratic country, the government
presents its budget after the parliament
where it is widely discussed and subjected to
criticism.
37- Public finance is more elastic/ flexible than
private finance and drastic changes can be
done.
38- the government can increase its income
imposing new taxes. Likewise it is also in a
position to make the necessary changes in its
expenditure.
39- There is much scope for changes in private
finance.
40- The public expenditure is governed by
deliberate economic policy of the government
and the economic, social and political
requirements of the country are considered
while planning the public expenditure.
41- Private finance is influenced by habits,
fashion, customs, status and personal needs of
the individual.
42- Immediate objective of the Public finance is of
their satisfaction.
43- It means public finance has a short-term
perspective.
44- It means private finance has a long-term
consideration.
45- In private finance private individuals tries to
satisfy their present needs and are interested
in obtaining quick returns.
46- The objective of Public finance is to fulfill
private interest and the income is more than
expenditures.
47- The objective of public finance is to maximum
social advantage to the society.
48- The motive of private expenditure is
public/social benefit.
49- The motive of public expenditure is private
benefit.
50- public expenditure, being more in
relation to private expenditure.
51- Private expenditure, being more in
relation to public expenditure, has
only a marginal effect on the economy.
52- private expenditure being in gigantic
has a tremendous.
 53- Objectives private finance is secure
adjustments in allocation of Resources and to
maintain economic stability.
54- Objectives private finance is reduced
economic inequalities and to achieve full
employment.
55- Objectives public finance achieve optimum
utilization of resources and to increase rate of
capital formation by increasing the rate of
saving and investment.
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