Discuss the nature of public finance. Is it a positive science or a normative science ?
Nature of Public Finance
The Nature And Scope Of Public Finance: Public finance is a science as well as an art. It is a science because we study in it the various principles, problems, and policies underlying the spending and raising of funds by the public authorities. It teaches how to collect taxes in the best way and how to maintain them economically and how to spend them properly.
As an art, public finance enables the concerned personnel to adopt the principles and policies in solving the financial problems of the Government in the best possible way to the maximum benefit of society. The way to be adopted should be logical, suitable and proper according to the time. Application of various principles and policies depends much on the ability of the personnel in the Government how best he can extract from it in the public interest.
Positive or Normative
In its positive aspect: The study of Government finance is concerned with what are sources of public revenue, items of public expenditure, constituents of the budget, and formal as well as the effective incidence of the fiscal operations.
In its normative aspect: Norms or standards of the government’s financial operations are laid down, investigated, and appraised. The basic norm of modern finance is general economic welfare. On normative consideration, public finance becomes a skillful art, whereas, in its positive aspect, it remains a fiscal science.
Nature of Public Finance
The Nature And Scope Of Public Finance: Public finance is a science as well as an art. It is a science because we study in it the various principles, problems, and policies underlying the spending and raising of funds by the public authorities. It teaches how to collect taxes in the best way and how to maintain them economically and how to spend them properly.
As an art, public finance enables the concerned personnel to adopt the principles and policies in solving the financial problems of the Government in the best possible way to the maximum benefit of society. The way to be adopted should be logical, suitable and proper according to the time. Application of various principles and policies depends much on the ability of the personnel in the Government how best he can extract from it in the public interest.
Positive or Normative
In its positive aspect: The study of Government finance is concerned with what are sources of public revenue, items of public expenditure, constituents of the budget, and formal as well as the effective incidence of the fiscal operations.
In its normative aspect: Norms or standards of the government’s financial operations are laid down, investigated, and appraised. The basic norm of modern finance is general economic welfare. On normative consideration, public finance becomes a skillful art, whereas, in its positive aspect, it remains a fiscal science.
