As one of the country’s top finance departments, our goal is to provide students with the theoretical and empirical tools necessary to achieve high levels of expertise in all areas of finance. The University of Chicago Booth School of Business is one of the world’s leading business schools, consistently ranked among the top finance schools in the US. It had more Nobel Prize winners on its staff than any other business school. Broadly there are two types of finance like public finance and private finance. Public finance refers to the financial matters of an authority or an organization like government. In the case of private finance, the ultimate aim is to acquire profits while public finance focuses on social welfare and development. The following table provided a comparative analysis and differences between private and public finance.
When consider a country, public finance playing an important role in its progress. Public finance facilitates a country to adopt necessary changes in its social and economical structures. Ii) Public finance facilitates the government as a role of controller over the economy. Iii) Public finance ensures the role of governmental authority in several matters like social welfare programs, defense, law etc. V) Public finance will helps to stabilize the economy through fiscal policy By adjusting taxes and subsidies, the government can ensure social equality along with economic stability.
Broadly, there are three views on public finance like classicalists’ view, Keynesians’ view and the modern view. Therefore, Keynes connected the role of public finance with economic stability. He suggested mainly two types of applications of public finance like public finance during inflation and public finance during deflation. Public finance during depression: During crisis or economic deflation, Keynes argued for deficit budget. Public finance during inflation: During inflation, people may hold more quantity of money and demand more commodities.
They are public revenue, public expenditure, public debt, financial administration and economic stabilization. Since the emergence of national level as well as international level financial organizations, public debt becomes a common matter in public finance. Financial administration refers to the functioning of the authority who dealing with financial matters of the country. Financial administration also includes many functions like tax collection, public payments, public receipts etc.
According to some authorities on public administration, the term financial administration refers to the financial processes and institutions involved in legislative financial control. In their view, the scope of financial administration encompasses the preparation of estimates, appropriation of funds, expenditure control, accounting, audit, reporting, review and so on. In a democratic context, this view may gain wider acceptance as it ensures executive responsibility to legislature. Yet another view advocates a budget oriented outline for the scope of financial administration.