Public finance is part of economics policy which is concerned with the way the government obtains revenue and spends it, so as to improve and promote the economic and social welfare of the citizens.
The Need and Role of the Public Finance
Public finance has the following roles:
• The governments need to finance certain public utilities i.e. public services such as, security, power, education, etc. This requires money which has to be raised through public finance.
• Through public spending, the government can redistribute income and wealth more evenly.
• The government has to participate and effectively contribute to the production, marketing and distribution of goods and services. This can only be successful through the required capital which is raised from public finance