3 Review(s)

Traditionally the term ‘Public Finance’ has been applied to the package of those policies and operations which involve the use of tax and expenditure measures, while budgetary policy is an important part to understand the basic problems of use of resources, distribution of income, etc. There is a vast array of fiscal institutions—tax systems, expenditure programmes, budgetary procedures, stabilization instruments, public debt policies, level of government, etc., which raise a spectrum of issues arising from the operation of these institutions. Further, the existence of externalities, concern for adjustment in the distribution of income and wealth, removal of poverty, etc. require political process for their solutions in a manner which combines individual freedom and justice. The problem of allocation of resources between public goods and private goods is a perennial problem.