Chapter 8 : Public Finance in India Q.3.Distinguish between the following concept: 1. Public finance and Private finance.

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.