Structure of Public Finance - Financial Administration




Financial Administration : 
A smooth and efficient implementation of revenue, expenditure and debt policy of the Government, is referred to as financial administration. This includes preparation and implementation of the Government budgets along with overall growth of the country.
Importance of Financial Administration:
Since the government is a public organisation it is legally bound to give explanation to the public for the money it collects from which source and in what way, and for what purposes it spends the money it collects. Here ties the planning for collecting money and spending it for various purposes. Both the income and expenditure are guided by plans or certain definite rules and regulations.
This is, in general terms, financial administration. The financial activities of a state can reasonably be compared with the management of a household. We know that the head of a family prepares a budget of income and expenditure and runs the family in accordance with the budget.
The financial management or administration of a state is the bigger edition of the financial management of a family or household. The term financial administration refers to certain rules and methods relating to revenue and expenditure.

The financial administration is the crucial aspect of public administration because the running or management of administration is impossible without money or finance and for that reason the financial administration occupies the centre of public administration.

If you would like to contribute notes or other learning material, please submit them using the button below.

      Forgot password?
Use app×