1. Public Finance
  2. Fiscal Policy
  3. Revenue Allocation in Nigeria
  4. Government Revenue and Expenditure


Public Finance

Meaning of Public Finance

Public finance deals with the financial activities of government with respect to revenue and expenditure. It shows government policy measures on generating revenue (income) and allocating expenditure, borrowing and lending, receiving and spending by the federal, state and local governments and their agencies to achieve specific objectives.

Objectives of Public Finance

Public finance aims at the following:

  1. Effective and efficient allocation of resources among the different sectors of the economy.
  2. Improving the level of production by reducing tax, granting subsidies and increasing government investment in productive activities.
  3. Re-distribution of income and productive goods among the various classes in the economy.
  4. Ensuring price stability by curtailing inflationary and deflationary tendencies in the economy to maintain reasonable prices of goods and services over time.
  5. Creating an improved and favorable balance of payments through increased taxation, import duties, subsidies, etc
  6. Creation of employment opportunities thereby reducing the level of unemployment to the barest minimum.

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