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Structure of Public Finance

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notes

Structure of Public Finance :

Differences Between Public Finance and Private Finance :

Points of difference Public finance Private finance
1) Objectives To offer maximum social 
advantage to the society.
To fulfil private interests
2) Determination of 
expenditure
Government first determines the volume and different ways of its expenditure An individual considers his income and then determines the volume of expenditure.
3) Credit status  High degree of credit in the market. Credit of a private individual is limited.
4) Right to print currency The Government can print notes through Reserve Bank of India. Private individual does not enjoy such right.
5) Elasticity of finance Public finance is more elastic.  There is not much scope for changes in private finance.
6) Effect on economy Tremendous impact on the economy of country Marginal effect on the national economy.

 

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