ASSIGNMENT ON PUBLIC FINANCE

Submitted to :
Dr.Md.Akter Mahmud
Professor,
Department of Urban and Regional Planning ,
Jahangirnagar University

Submitted by :

Name : JERIN ISRAT

Class Roll : 700
Batch : URP - 21
Department of Urban and Regional Planning,
Jahangirnagar University.
Course no : URP - 4103
Course Name : Public and Municipal Finance
Public finance is the study of the role of the government in the economy. It is the
branch of economics that assesses the government revenue and government
expenditure of the public authorities and the adjustment of one or the other to achieve
desirable effects and avoid undesirable ones.

Importance of public Finance

● The proper management of public finance ensures the growth of the nation.

● It encourages investment through various policies and packages,

● Preparation, implementation, evolving with the change in technology and the

policies framed by the government for the development of the economy at large.

● It helps to maintain price stability and reduce inflation and unemployment.

● It is also important in terms of allocating natural and human resources.

● It plays a critical role in ensuring economic stability. Governments can use fiscal
policy tools to manage the economy, such as taxation, public expenditure, and
debt management, to maintain a stable economic environment.

● It can be used to support social welfare programs, including unemployment

benefits, social security, and healthcare, to provide assistance to vulnerable
populations.

● It can be used to redistribute income from wealthy individuals to those who are
less fortunate. This can be achieved through progressive taxation, where the rich
pay a higher tax rate than the poor.

● It can be used to promote economic growth by investing in infrastructure,

education, and research and development.

Functions of Public Finance :

Governments use public finance to provide public goods and services, such as
education, healthcare, infrastructure, and national defense. Governments use various
taxation policies and social welfare programs to reduce income inequality and provide
assistance to the poor and vulnerable sections of society. Governments use fiscal policy
tools, such as taxation, government spending, and public debt management, to manage
the economy and stabilize it during periods of economic instability. Governments use
public finance to impose regulations and restrictions on economic activities to protect
consumers, the environment, and public health. Governments use various sources of
revenue, such as taxes, fees, and borrowing, to finance public expenditures.

Management of income and expenditure by optimum utilization of the resources.

Managing the growth and price stability in the economy.
Providing the necessary needs and infrastructure to the public.
Take initiatives for the development of the people, which can contribute to the
nation’s development.
Maintaining the transparency of the policies and the records of income and
expenditures.
Compare the actual position with the budgets and accordingly alter the policies
and manage the economy.
Monitor the functioning and effectiveness of the financial policy.
Preparing the economic policies for the nation’s development and the economy.

Scope of Public Finance

The scope of public finance is not limited to managing the finance. It also focuses on
maintaining the proper infrastructure, contributing to the national economy, reducing
unemployment, managing the financial pillars of the economy, operating the hygiene
and cleanness in the nation, analyses tax collection, ensuring the burden of tax is not
very high, monitoring and enforcing the implementation of the financial and fiscal policy,
maintaining the confidence of the public at large.The scope of public finance is
extensive and covers a range of activities related to the management of public
resources.
1.Public finance deals with the sources of government revenue, such as taxes, fees,
and charges.

2.It deals with the government's spending on goods and services, such as
infrastructure, education, healthcare, and defense.
3. It also includes the principles of public debt management, such as debt sustainability,
risk management, and transparency.

4.It includes the principles of public financial management, such as transparency,

accountability, and participation.

5.Public finance deals with the provision of public goods and services, such as
healthcare, education, and infrastructure, which are essential for the well-being of
citizens.

Evolution of Public Finance in French :

The basic features of the history of French public finance law, for example according to
Michel Bouvier, fluctuate between its immutability and modernization

1Pre-Classical Public Finance Law (1314 - 1814)

The period was also characterized by the fact that more and more people invoked
the principle of consent to taxation, which was still overlooked by the then ruling elite.
2Classical Public Finance Law (1814-1914)
Baron Louis and Count de Villèle are the authors of traditional budgetary principies,
including:

- The annual budget rule (reaffirmed in 1822, budget or rather fiscal year
corresponds to calendar year):
- The principle of unity of the budget (so-called extraordinary budgets are ended,
i.e. budgets dedicated to always different areas);
- The principle of universality of the budget (in 1818)

- And the principle of specialty (presumes voting on expenditures not in general,

but according to individual ministries: it has been applied since 1817, according
to chapters since 1831
3.Modern public finance law (1914-1956)
 In this period, the public finance law gained a strength and, according to Orsoni, is
characterized by four main features:
- interventionism in public budgets,
- increase in public spending,
- growth and diversity of resources,
- acceptance of deficits and public debts.

4.Contemporary Public Finance Law (1956-to this day)

Contemporary public finance law in France, since 1956, has focused on
establishing a clear framework for budgetary management and increasing transparency
and accountability in public spending through measures such as the creation of the High
Council of Public Finances and the Court of Auditors.

The modern French system of public finance is based on a series of legal and
institutional reforms that have taken place since the end of World War II. The French
constitution of 1958 established the principle of budgetary balance and introduced a
system of parliamentary control over public finances.
In the 1980s, France embarked on a series of economic and fiscal reforms aimed at
reducing the budget deficit and promoting economic growth. In recent years, the French
government has continued to modernize its public finance management system, with a
focus on improving transparency and accountability, reducing public debt, and
promoting sustainable economic growth.
The evolution of public finance in France has been shaped by a long history of
institutional and legal reforms, as well as changing economic and political conditions.
The French government has continued to adapt its public finance management system
to meet the challenges of the modern world, with a focus on promoting economic
growth, fiscal sustainability, and transparency in the management of public funds.

Evolution of Public Finance in Germany

Germany has a long and complex history of public finance management, dating back to
the Middle Ages when various states and principalities collected taxes to finance public
expenditure. Over time, Germany's public finance system has undergone significant
changes, particularly in the aftermath of World War II.

After the war, Germany faced severe economic challenges, including high inflation and
a lack of financial resources. The government implemented a series of measures to
stabilize the economy and rebuild infrastructure, including the introduction of a new
currency, the Deutsche Mark, in 1948. This marked the beginning of a new era of public
finance management in Germany.
The German constitution, known as the Basic Law, was adopted in 1949, establishing
the principles of federalism, democracy, and the rule of law. The Basic Law also
established a system of fiscal federalism, which divided revenue-raising powers
between the federal government and the states. .
In the decades that followed, Germany's public finance system underwent further
changes, particularly in response to economic and political developments. For example,
the 1970s saw a period of high inflation and rising public debt, which led to the
introduction of new fiscal rules and reforms aimed at improving public finance
management.
In the 1990s, Germany faced the challenge of reunification, which required significant
investment in infrastructure and social services in the former East Germany.
In recent years, Germany's public finance system has focused on promoting fiscal
sustainability, improving public expenditure management, and supporting sustainable
economic growth. This has included the introduction of new fiscal rules and a stronger
emphasis on transparency and accountability in the management of public funds.
Germany's public finance system is characterized by a strong system of fiscal
federalism, which has played a key role in managing public finances at the federal and
state levels. The German government has continued to adapt its public finance
management system to meet the challenges of the modern world, with a focus on
promoting fiscal sustainability, transparency, and accountability

Evolution of Public Finance in Bangladesh

Since 1971,Bangladesh has undergone significant changes in its public finance system,
reflecting the challenges of a developing country with a growing population and
economy.
In the early years of independence, Bangladesh faced severe economic challenges,
including - high levels of poverty,food insecurity, and a lack of financial resources so
,the government implemented a range of policies aimed at stabilizing the economy and
promoting economic growth, including investment in agriculture, industry, and
infrastructure.In the 1980s, Bangladesh embarked on a series of economic and fiscal
reforms, including the introduction of a value-added tax, reforms to the banking sector,
and the establishment of a national planning commission to oversee public expenditure.
These reforms helped to stabilize the economy and lay the foundations for future
growth.In the 1990s and 2000s, Bangladesh continued to implement reforms aimed at
promoting economic growth and improving public finance management
In recent years, Bangladesh has focused on promoting inclusive economic growth and
reducing poverty through a range of social protection programs and targeted
investments in health, education, and infrastructure. Despite these efforts, Bangladesh
still faces significant challenges in managing public finances, including a high level of
public debt, a large informal economy, and a lack of transparency and accountability in
some areas. But, the country has made significant progress in recent years and is now
widely regarded as a success story in terms of economic growth and poverty reduction.
The evolution of public finance in Bangladesh has been shaped by the country's
economic and political history, as well as its ongoing efforts to promote inclusive growth
and reduce poverty. The government has implemented a range of reforms aimed at
improving public finance management, and while challenges remain, the country has
made significant progress in recent years.