INTRODUCTION As part of public finance, the budget allocation process is key to the government’s roles of allocation, redistribution of resources, and economic stabilisation. The government uses the fiscal tools in order to bring increase in both aggregate demand and aggregate supply. Public finance in some form can be said to be as old as civilization itself. ADVERTISEMENTS: Traditional economists held the view that the State should not … The unit has since completed a number of reviews focused on operating expenditure in areas ranging from vocational education to … The first Social, and defense. Government finance is important to achieve sustainable high economic growth rate. A Government Finance or a Public finance is the study of the role of the government in the economy. History. Public finance studies the role of the government in an economy. It is rather a means of securing social objectives. roads), healthcare for the poor and aging (e.g. 2. We can analyse some important definitions of public finance given by some leading authorities in public finance. INTRODUCTION The core of public finance depends on spending someone else's money by some peo-ple. The public sector is that part of the economy controlled by the government. Price stability: As an emerging economy with a wide gap in the d istribution of public goods, South Africa still needs government to play the three roles mentioned above. Key Words: Public expenditure, medium-term expenditure system, fiscal discipline, budget concept. It is the branch of economics which assesses the government revenue and government expenditure of the public authorities and the adjustment of one or the other to achieve desirable effects and avoid undesirable ones. In 2015, HM Treasury, in partnership with government departments, created a new costing unit to conduct rapid six- to eight-week reviews of areas of public spending. The government borrows from any of the following reasons: • to finance national government deficits; • to obtain foreign exchange; • to secure financing at more favorable terms than the opportunity cost of revenues; • to take advantage of benefits attached to the funds, e.g. Underdeveloped nations are keen on rapid economic development which requires huge expenditure to be incurred in the various sectors of the economy. Socialism, in any sense, can be realised only through progressive taxation and their distribution afterwards. Elemental services include infrastructure (e.g. PUBLIC FINANCE 1. A Government Expenditure includes all government consumption, … Economists Publication Definition Charles F. Bastable Public Finance – 1892 For all States – whether crude or highly The aim of this paper is to point out an importance of public expenditure management and its using in the area of public finance and budget. income and expenditure of public authorities and principles, problems and policies relating to these matters. Given the tax rate, this increase in income will ensure collection of … technology; and, • to balance the timing of resources with the project gestation and It assesses the government expenditure and revenue and the adjustment of one or another public institution to achieve desirable effects while avoiding undesirable ones. Public expenditure is not merely a financial mechanism. The tools are taxes, public debt, and public expenditure and so on. An important rule of public finance, which is sometimes described as a golden rule, is that if borrowed money by the government is used for investment or developmental purposes, it leads to growth in GDP or national income. 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