Functions And Objectives of Public Finance That You Need to Know
DTA public finance deals with the financial activities of the government. These activities include debt operations, revenue and expenditure and their economic effects. Public finance tries to analyze the impacts of the financial activities of the government on corporate bodies and individuals. It encompasses fiscal policy which refers to the government plan of action concerning revenue rising through taxation. The objectives of public finance include: Price stabilization This is a very important objective of public finance. It maintains stability in prices of services and goods hence preventing constant fluctuations, deflation and inflation that destabilizes the country’s economy. Equitable wealth distribution Another objective of public finance is to ensure that there is an equitable distribution of wealth and income among people and various sections of the country. Need satisfaction It is crucial that people’s needs are satisfied. People’s needs include f