Assignment one:
10 marks
Name: Bashir Mohamed Adan
1) Public finance deals with the study of income and expenditure of the government.
2) The major categories of public finance are
A. Raising public revenue and Debt,
B. Financial administration of public revenue & expenditure,
C. Incurring public expenditure.
3) Define:
A. Public revenue is income received by a government from taxes and non-tax sources to
enable it to undertake government expenditures.
B. Public expenditure is the expenditure made by the government of a country on
collective needs and wants such as salaries, pension, security, infrastructure etc.
C. Public debt is the total amount of debt, including total liabilities, borrowed by the government
to meet its development budget.
D. Financial administration and control is the management of financial tasks for the government.
E. Economic Stability and Growth is the fiscal policy of the government in dealing with
inflationary and deflationary situations, instability of the price level, promotion of full
employment, government of economy, welfare of the people etc.
4) The major similarities and differences between public and private finance are;
Similarities
Satisfaction of human wants
Borrowings
Maximum Advantage
Scarcity of Resources
Engagement in Similar activities
Differences
Motive
Nature of Resource
Secrecy of budge
Coercive methods
Right to print currency
5) major important points of public finance in social and economic development
A. Economic significance
B. Capital formation
C. Economic stabilization
D. Full employment
6) The goods and services which are seem to be harmful for the society, these goods have negative
externalities and they are smoker, qad, drinks drugs are undesired wants that government should
prevent.