Importance Of Public Finance

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 Importance Of Public Finance :-

  • The effective management of public finances results in the overall growth of the country
  • Public financial management also encourages investment through various investment policies and avenues
  • The preparation, implementation, and evolution with the changes in technology and government policies for the development of the economy in general form a  part of the public financial management
  • It helps in maintaining price stability and keeping the inflation in check
  • It also helps in reducing unemployment
  • It is also crucial for allocating human and natural resources.

      Functions of Public Finance:-

The following points illustrate the most important functions of public finance:

  • Managing public revenue and expenditure by proper utilisation of resources.
  • Establishing price stability and reduce inflation in the economy
  • Providing the public with the necessary infrastructure
  • Spending on public development will lead to the overall development of the economy
  • Maintaining transparency in public policies and records of public revenue and expenditure
  • Comparing the current position with the public budgets, and accordingly, modifying the policies to manage the economy
  • Monitoring the effectiveness of different functions of the financial policy
  • Preparing the economic policies for the nation’s growth and development

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