Concept and Importance of Government expenditure, Government revenue, Government borrowing and Government budget
Government finance is a field of economics concerned with governmental activities payment. It deals with the expenditure and revenue of the nation or state.
Taxation is a biggest source of public revenue of the government. It may be the levied on the income, property and even in the time of purchasing a commodity.
This note provides the overall summary about the types of tax and helps to make clear about the merits and demerits of different tax system. If the tax rate increases along with the increment in the income then this tax system is called progressive tax system. In simple word, the tax rate is higher on to rich and lower on poor people.
Government borrowing refers to the borrowing by a government from within the country or from aboard. In other words, the loan taken by the government is known as government borrowing.
The expenditure to be used by a government for the sake of public welfare is known as government expenditure or public expenditure. Government performs varieties of function for the maintenance welfare functions.