Public finance is the study of the rules governing the organization and management of state revenues. Thus, public finance can be interpreted as a set of defined principles that govern the financing of institutions, local authorities, and governments. Find out what public finance is all about.
Indeed, public finance allows for the establishment of the state budget taking into account the institutions and services of the state. Also, it should be noted that specific sectors such as defense, justice, and security are the most involved.
A good sharing of resources
Indeed, the ministry in charge of defense and public security is responsible for the proper distribution of state resources. Thus, in this case, public finances allow for the allocation to each of the state's institutions of the budget necessary for their proper functioning.
The objective here is to share the state's revenues efficiently in order to enable the different institutions and services of the state.
Budget transparency is one of the biggest problems of states today. Thus, corruption and embezzlement of public money is one of the problems that undermine the achievement of the objectives sought by public finances.
Thus, all institutions that receive funding and support from the state must provide management reports. They must account for how they manage state resources and where the money goes.
Reporting on the use of external assistance
Here, the purpose of public finance is to show the population and the world at large in this case investors and donors how they aid and donations received are managed.
In addition to internal actors, it also allows external actors to keep an eye on the management of the finances and donations made to the country.