Public Finance

The purpose of this paper is to provide an overview of public finance and its philosophy. Public finance is a part of economics and related with those activities, which are associated with the payment of cooperative and governmental activities (Gaffney, 2008). Public Finance may also be also defined as a science because it deals with a definite and limited field of human knowledge; it admits of an orderly arrangement of its facts and principles and contains many laws of general progress belonging to its own field; and it foresees as well as explains a certain class of phenomena (Plehn, 1996). This paper examines the philosophy of Public Administration; the comparison and contrast between governmental accounting and nongovernmental accounting; and the relationship between budgeting and financial reporting in government. Public Finance is a part of economics and related with activities, which are associated with the payment of cooperative and governmental activities. The philosophy of public finance is based on raising funds for public purposes (Gaffney, 2008). It is mainly focusing on the establishment of rights and responsibilities with maintaining balance between them for accomplishing practical tasks. There is two general terms associated with public finance. They are governmental finance and public economics. The major functionality of public finance is: • On the basis of different activities in which public sectors are involved and the way of their organization such as revenues and expenditures • Anticipation and realization of the results of different governmental activities • On the basis of assessment of alternative policies However, different items, for example, rent and land, are noted differently on the basis of their characteristic of public finance. Different activities of public sector are defined on the basis of their approaches for the economic functions of government. Implementation of public finance concepts are based

References: Gaffney, M. (2008). The Philosophy of Public Finance. Retrieved July 22, 2010, from http://www.masongaffney.org/publications/G44Philosophy_of_Public_Finance.CV.pdf Government Budgeting and Accounting (2008). Retrieved July 22 2010, from http://www.adb.org/Documents/Books/Diagnostic_Study_Accounting_Auditing/PHI/chap_06.pdf Justin, P. (2000). Business Environment. New York: Tata McGraw Hill Publishers Retrieved July 17, 2010 from www.BE./ddsd234lijsdlkjsdf.lk.html. Plehn, Carl. (1996). Introduction to Public Finances. Norwood Publication. Retrieved July 22, 2010 from http://chestofbooks.com/finance/Carl-Copping-Plehn/Introduction-To-Public-Finance/index.html.