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Distinguish between the following concept: Public finance and Private finance - Economics

Distinguish Between

Distinguish between the following concept:

Public finance and Private finance

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Solution

Points Public finance Private finance
Meaning Public finance is concerned with the revenue/incomes and expenditure, borrowings, etc. of the economy or government. Private finance is the study of income and expenditure, borrowings, etc. of individuals, households, and business firms.
Adjustments Government adjusts the income, according to the size of expenditure on different segments. Individuals adjust their spending as per their income.
Objective Public finance aims to offer the maximum social advantage to society. Private finance aims to fulfill private interests.
Nature of Budget The government prefers a deficit budget. An individual attempts to maintain a surplus budget.
Financial Transaction Transactions are open and known to all. Transactions are kept secret.
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
Right to print currency The Government can print notes through Reserve Bank of India. Private individual does not enjoy right to print currency.
Effect on economy Public finance has tremendous impact on the economy of country. Private finance has marginal effect on the economy of a country.
Concept: Structure of Public Finance - Public Revenue
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APPEARS IN

Balbharati Economics 12th Standard HSC Maharashtra State Board
Chapter 8 Public Finance in India
Exercise | Q 2. (1) | Page 79
SCERT Maharashtra Question Bank 12th Standard HSC Economics Maharashtra State Board 2021
Chapter 8 Public Finance in India
Distinguish Between | Q 1
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