Balbharati solutions for Economics HSC 12th Standard Maharashtra State Board.
Chapter 8 : Public Finance in India
Q.3.Distinguish between the following concept:
1. Public finance and Private finance.
Points | Public finance | Private finance |
Meaning | Public finance is concerned with the revenue/incomes and expenditure, borrowings, etc. of the economy or government. | Private finance is the study of income and expenditure, borrowings, etc. of individuals, households and business firms. |
Adjustments | Government adjusts the income, according to the size of expenditure on different segments. | Individuals adjust their spending as per their income. |
Objective | To promote social welfare. | To maximize profit. |
Nature of Budget | The government prefers a deficit budget. | An individual attempts to maintain a surplus budget. |
Financial Transaction | Transactions are open and known to all. | Transactions are kept secret. |
