Public Finance - Sources of Public Revenue - Principles of Taxation -Public Expenditure and Public Debt – Meaning and Causes for Growth.

1. Meaning of Public Finance
Public finance is the study of
financial aspects of government.
public finance related to the revenue
and expenditure of the government.

2. Public Revenue
 Meaning of Public Revenue:
 The income of the government through all source is called public
income or public revenue
 There are two source of public revenue
I. Tax Revenue:
a) Administrative revenue
b) License fee:
c) Special assessment
d) Fine and penalties:
e) Forfeiture:
f) Escheat:
I. Non-Tax Revenue

3. Tax Revenue Non – Tax Revenue
Direct Tax
Goods and
Service Tax
CGST
SGST
IGST
Administration
Fees
License Fee
Special
Assessment
Fine and
Penalties
Forfeitures
Escheat
Sources of Public Revenue
Commercial
Revenue
Gifts and
Grants

4. PUBLIC EXPENDITURE
 Meaning
 Public expenditure refers to the expenses
of the public authorizes central ,state and
local government for social and economic
welfare of citizens.

5. Causes of Public Expenditure
Growth:
The following heads are causes for increasing public expenditure in
India:
1. The concepts of welfare state
2. The need for defence
3. Resource mobilization and ability to finance
4. Inflation
5. The role of democracy and socialism
6. The urbanization effect
7. The rural development effect
8. The population effect
9. Income elasticity and rise in per capital income
10. Modernization of agriculture
11. Industrial development
12. The growth of transport and communication
13. Provision of public utility

6. Canon of Taxation:
Canon of Taxation
Adam Smith Bastable
1. Canon of Equity:
2. Canon of certainty:
3. Canon of economy:
4. Canon of convinence:
1. Canon of Elasticity:
2. Canon of Productivity:
3. Canon of Simplicity:
4. Canon of Expectancy:

7. Principles of taxation:
1. The Physiocratic Theory
2. Financial Theory
3. The Principle of Equity
4. Cost of service Theory
5. Benefit Principle
6. Ability to pay Theory

8. PUBLIC DEBT
 Meaning:
 Public debt refers to borrowing by government
from within the country or from abroad from private
individual from banking and non-banking financial
institution

9. Types of Public Debt:
1. Internal debt and external debt
2. Productive and unproductive debt
3. Compulsory and voluntary debt
4. Redeemable and irredeemable debt
5. Funded and unfunded debt

10. Causes of increase in public debt or
causes for growth of public debt in
india.
1. Bridging the Gap Between Revenue and
Expenditure
2. To Fight Depression.
3. Curbing Inflation
4. Financing Economic Development.
5. To Meet Unexpected Emergencies.
6. To Finance War.
7. To Carry Out Welfare Programme
8. To create infrastructure.

11. THANK YOU