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Public Finance - 3 Video Lecture | Indian Economy for UPSC CSE
FAQs on Public Finance - 3 Video Lecture - Indian Economy for UPSC CSE
| 1. What is public finance? |  |
Ans. Public finance is the study of how governments raise and spend money to fund public services and infrastructure. It involves analyzing government budgets, taxation policies, public debt, and the impact of fiscal policies on the economy.
| 2. How does public finance impact the economy? | |
Ans. Public finance plays a crucial role in the economy as it determines the level of government spending, taxation, and borrowing. These policies directly affect the overall economic activity, resource allocation, income distribution, and economic stability of a country.
| 3. What are the main sources of government revenue in public finance? | |
Ans. The main sources of government revenue in public finance include taxes (e.g., income tax, sales tax, corporate tax), fees and licenses, fines and penalties, grants and transfers from other governments, and revenue generated from state-owned enterprises.
| 4. What is public debt and how does it impact public finance? | |
Ans. Public debt refers to the total outstanding borrowing by the government. It is usually in the form of government bonds or treasury bills. Public debt impacts public finance by increasing the government's liabilities, which can lead to higher interest payments, reduced fiscal flexibility, and potential risks to the overall economy.
| 5. How does public finance contribute to sustainable development? | |
Ans. Public finance plays a vital role in achieving sustainable development goals by providing funding for public services such as education, healthcare, infrastructure development, and environmental protection. It ensures that resources are allocated efficiently and equitably, promoting long-term economic growth and social well-being.
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