Scope of Public Finance

 Prof. Dalton divides the scope of Public Finance into four categories. They are discussed as under:- 

1. Public Revenue, which deals with the method of raising funds and the principles of taxation. Thus, within the purview of public revenue, we take up the classification of public revenue, canons and justification of taxation, the problem of incidence and shifting of taxes, effects of taxation, etc.

2. Public Expenditure, which deals with the principles and problems relating to the allocation of public spendings. Here we study the fundamental principles governing the flow of public funds into different channels; classification and justification of public expenditure; expenditure policies of the government and the measures adopted for general welfare.

3. Public Debt, which deals with the study of the causes and methods of public loans as well as public debt management.

4. Financial Administration, under this the problem of how the financial machinery is organised and administered is dealt with.

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