Answer in Brief
State with reason whether you agree or disagree with the following statement:
Public finance is more elastic than private finance.
I agree with the above statement.
- Public finance aims to offer the maximum social advantage to society while private finance aims to fulfill private interests.
- There is not much scope for changes in private finance.
- On the other hand, the government determines the volume and different ways of its expenditure based on the need for an hour.
- The government can also print notes through the Reserve Bank of India.
- Hence, public finance is more elastic than private finance, i.e., the extent of public expenditure can be varied as per the needs.
Concept: Public Finance in India
Is there an error in this question or solution?