Public finance refers to activities carried out by the government in raising and spending of finances. What are the purposes of public finance?

      

Give the purposes of public finance.

  

Answers


Maurice
(i) To promote economic stability.

(ii) To create conducive business environment.

(iii) To raise revenue for the government that is used in providing essential goods and services.

(iv) To provide essential goods and services to its citizens for example, hospitals, roads or schools.

(v) To control consumption of certain product that may affect consumers' health such as alcohol.

(vi) To encourage consumption of certain commodities.

(vii) To promote balanced regional development for example, by standing projects in areas that are lagging behind.

(viii) To redistribute wealth for example, taxing heavily the rich and using the money to benefit the poor.


maurice.mutuku answered the question on July 5, 2017 at 07:17


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