When talking of public finance, two things come into mind:
I. Sources of government revenues
II. Application of those revenues by the government in provision of public services to the citizens.
From the foregoing, it’s clear that public finance basically deals with how the government raises revenue and how it uses the revenue in provision of public services to the citizens. This is a topic of major concern to all citizens; since how the government raises and uses its revenue has a direct impact on your personal lifestyle as an individual.
The government mainly gets its revenue from taxes which are imposed on you the citizen either directly or indirectly. The other source of income happens to be borrowing either locally or externally. Both these sources of revenue have a direct impact on the economy of the country and hence they end up affecting you the citizen either favorably or unfavorably.
On the other hand, after raising the revenue, the government then spends it on provision of public services to the citizens. Some of the services which the government may spend its revenue on include: education, health, security, infrastructure development, provision of water and food e.t.c.
As you can see, the foresaid factors have a direct bearing on you as an individual and the kind of lifestyle you can afford to live. It is therefore very critical that you have an understanding of how the public sector finances operate and how they are bound to affect you.
Public finance is a very wide and interesting field in the economy which calls for thorough scrutiny and criticism in order to improve efficiency in government spending. It is therefore our pleasure at FieCon-sult to invite you on board as we start this adventurous journey of getting to understand the nuts and bolts of public finance…be our guest…