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Tag Archives: Public Debt

Criticism Of The Principle Of Maximum Social Advantage

Maximum-social-advantages

To meet financial obligations, the government generates revenue sources through taxes and debts from the public and/or from foreign governments, and agencies. Thus. the science deals how to collect revenues and how to spend them to the most benefit to the citizens. The government has to ensure maximum social Advantage to its citizen. It should balance the social Advantage with social sacrifice. The The Principle Of Maximum Social Advantage, undoubtedly, has great theoretical significant, but in practice the principle is criticized on the following grounds:  (1) Non Measurability of Social …

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Graphical Presentation Of Principle Of Maximum Social Advantage

Maximum-social-advantages

Public finance is a science that deals with the finance (income and expenditure) of public bodies and the government of a nation. The government has to perform obligatory. and optional functions. Obligatory functions include defence and maintenance law and order situation. Other functions are optional. To meet these obligations, it generates revenue sources through taxes and debts from the public and/or from foreign governments, and agencies. Thus. the science deals how to collect revenues and how to spend them to the most benefit to the citizens. The government has to …

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Principle Of Maximum Social Advantage In Public Finance

principle of maximum social advantage,

Principle Of Maximum Social Advantage The principle of maximum social advantage is the best principle of public finance, according to Hugh Dalton. According to him, on that system of public finance is the which secures the maximum social advantage to the community. Public finance operations i.e. raising revenue an incurring expenditure bring about transference of purchasing power among various sections of the society that influence the volume of production and distribution of wealth. The various public finance operations will be justified only when they add to the aggregate social welfare. …

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Difference Between Public Finance And Private Finance

Difference Between Public Finance And Private Finance

Public finance is the study of income and expenditure of the government and also of the policies and principles relating thereto. On the other band private finance is the study of income, debt and expenditure of an individual or other non-government bodies. In some respects, both Public Finance And Private Finance are similar but in most of the cases, these two differ from each other. We shall now make an attempt to point the difference between public finance and private finance in the following lines. Difference Between Public Finance And …

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Similarities Between Public Finance And Private Finance

Public finance is the study of income and expenditure of the government and also of the policies and principles relating thereto. On the other band private finance is the study of income, debt and expenditure of an individual or other non-government bodies. In some respects, both are similar but in most of the cases, these two differ from each other. We shall now make an attempt to point the similarities between private finance and public finance in the following lines. (1) Maximum Advantage. The objective of both is the same …

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Importance Of Public Finance In An Economy

Importance Of Public Finance In An Economy

The importance of public finance was not so recognized in the 19th century as the Government in those days confined itself to the maintenance of law and order situation in the courtyard to the defense of the country from external aggression. The Government in those days did not intervene in economic But in the 20th century, every Government ensures ‘Social Welfare‘ to its citizens and therefore, the scope of governmental activities has been increasing day by day. Modern Governments do not only confine themselves to law and order situation but …

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The Nature And Scope Of Public Finance

nature and scope of public finance

Public finance deals with the finances of the public bodies at national, state or local levels for the performance of his obligatory and optional functions. Public finance deals with the income and expenditure of public bodies or the Government of the nation and the principles, problems and policies relating to these matters. However, the nature and scope of public finance is discussed below: The Nature And Scope Of Public Finance : Nature of Public Finance The Nature And Scope Of Public Finance : Public finance is a science as well as …

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Which Is Better – Tax or Public Debt?

Taxation certainly has an edge over public debt but the taxable capacity of the people is not unlimited. Hence, it can be suggested that the Government should not impose taxes beyond the Capacity of the people to pay otherwise, it will adversely, affect the capacity to work and to save by the people. As a result, the production and the economy as a whole may receive setback. If Government requires money to meet the development expenditure beyond the taxable capacity of the people, it should go for public borrowings and …

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Merits and Demerits of Public Borrowings

Public borrowings are not compulsory levies but purely a voluntary contribution by those who have surplus. But the Government has to repay such amount of borrowings as well its interest as and when due. It is, therefore, a charge on Government’s future revenue. Merits of Public Borrowings: The following point can be put forth in favor of public borrowing if the entire development plans ace financed through this sole source of revenue- (i) For the people of the country, public borrowings are considered better than taxes as taxes are never …

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The Merits and Demerits of Taxation

merits and demerits of taxation

The Government of a developing country more often resorts to two major sources to raise the necessary funds for the developmental expenditure (i) Taxation, and (ii) Public borrowings which one is better is very difficult to say. Before reaching any conclusion, we are explaining the relative merits and demerits of taxation. The merits and demerits of Taxation Taxation it the prime source of revenue of a Government. It is compulsory payment by the citizen to the Government, the avoidance of which may lead to penalty. Tax-revenue generally determines the size …

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