Economics Class 10

Meaning and Scope of Public Finance

Professor Dalton defined public finance as being connected with the income and expenditure of public authorities, with the adjustment of one to another. Tax revenue and non-tax revenue are the two sources of income.

Public Expenditure

Public expenditure is the expenditure incurred by the government of any nation. Any government incurs a large amount of expenditure for the welfare of the nation, for activities such as the development of roadways, education, irrigation systems and to maintain law and order.

Central Banking

A Central Bank is the apex bank which controls the entire banking system of a country. It has the sole
authority to issue notes in that country. It also acts as a banker to the government and controls the supply of money in the country.

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