Public finance refers to the activities carried out by the government associated with raising of finances and the spending of the finances raised (it is the study of how government collects revenue and how it spends it)
The components of public finance are;
- Public revenue
- Public expenditure
- Public debt
Public revenue – refers to the revenues (income) and resources received by the government from different sources.
Public expenditure – refers to the resources spent by the government.
Public debt – refers to the money and resources borrowed by the government.