State with reasons whether you agree or disagree : Public finance is different from private finance.
Q.4 (v) State with reasons whether you agree or disagree : Public finance is different from private finance.
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Answer: I agree with the statement.
| Point | Public finance | Private finance |
|---|---|---|
| Meaning | Income and expenditure of the government. | Income and expenditure of an individual or firm. |
| Objective | Maximum social welfare. | Maximum personal satisfaction or profit. |
| Adjustment | Government first estimates expenditure and then raises income. | Individual adjusts expenditure according to income. |
| Sources of income | Taxes, fees, fines, borrowing, can create money. | Wages, salary, profit, interest, rent; cannot create money. |
| Borrowing | Can borrow internally and externally on a large scale. | Limited borrowing capacity. |
| Budget period | Annual budget. | No fixed budget period. |
| Secrecy | Budget is public. | Kept secret. |
Therefore public finance differs from private finance.
Doubtly AI
· 28 Oct 2026
AI-verified · Oct 2026
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