MEANING OF PUBLIC FINANCE

Public finance is a branch of economics that deals with the income and expenditure of the public sector and its effects on the economy.

The public sector is made up of central government, local or municipal authorities and public corporation. Public finance deals with the income and expenditures of the government. It is the study of how government raises and spends its income over a period of time usually one year. The public sector constitutes a significant part of most economies in the world.