Public Finance - Overview, Example, How Government Finance SYSTEM
What is public finance?(details about public fina.)
Public Finance is the management of revenue, Expenditure and debt burden of any country through various government and semi-government institutions. This guide provides an overview of how public finance is managed, what are the different components of public finance, and how easily it can understand what all the numbers mean. A country's financial status can be evaluated exactly as the business',,>more info.>sandiproy1811@gmail.com
Components of Public Finance
The main components of public finance include activities related to the collection of revenue, expenditures for supporting society, and implementation of a financing strategy (such as issuing government debt). The main components include:
Tax collection
Tax collection is the main revenue source for governments. Examples of taxes collected by governments include sales tax, income tax (a type of progressive tax), property tax and property tax. Other types of revenue of this category include fees and fees on imports and revenues from any type of public services, which are not free.
Budget
Budget is a scheme that the government wishes to give as expenditure in the financial year. For example, the U.S. In, the President presents a budget request for the Congress, the House and the Senate make bills for specific aspects of the budget, and then the President signs them in the law. Read a copy of the US government's 2017 budget published by the Office of Management and Budget.
Expenditure>
Spend is everything that a government actually spends on social programs, education and infrastructure such as money. Most of the expenditure of the government is a form of income or money redistribution, which aims to benefit the society as a whole. The actual expenditure may be more or less than the budget.
Loss / surplus
If the government spends more, then it collects in revenue, that year there is a deficit. If the government has less expenditure than collecting it, then there is a surplus.
National debt
If the government has a deficit (expenditure is more than revenue), then it will fund the gap by borrowing money and issuing national loans. U.S. Treasury is responsible for issuing debt, and when there is a shortage, Office of Debt Management (ODM) will decide to sell the government securities to investors.
Management of public finance
Let's see how taxes, expenditure and losses work. Below is a picture of how it is connected to the three, and how is it government finance expenditure is more than revenue
Revenue and expenditure
Below is a list of some of the most common revenues and expenditures in the world of public finance.
Revenue / tax
Income tax (personal, corporate)
property tax
Sales Tax
Value added tax (VAT)
Import duty
property tax
Expenditure
Healthcare
employment Insurance
Pension
Education
Defense (military)
Infrastructure
Aditional resources
Thank you for reading CFI's guide for what public finance is and how all numbers fit together. When you see it in simple words, it is easy to understand.
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Accounting for Income Tax
Top accounting scandal
Finance pay guide
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Edited by S.ROY
