Question

discuss two such public finance issues, why they are important, and why they can only be solved through the political process.

Answer 1

Two public finance issues which are important and they can only be solved through political process are-

A. Divestment policies of the government-divestment policies of the government has been implemented as a part of privatisation and the government has been following with the policy divestment where public sector undertaking are slowly becoming private and these divestment process are taking a lot of political will as this is getting opposed by large section of society so various undertakings are becoming private and there will be a lesser control over these organisations due to divestment process and there should be proper adoption of privatisation so that effective management can be established in this public organisations.

B. Problem of unequitable growth-there has been a large problem embedded with various economies which is related to disparity of the income among various groups in the society and only political parties and government can change the rules and regulations and taxation schemes and employment schemes so that there would be a proper establishment of enhanced structure which will be promoting equitable growth among different sections of the society and they will be helping in lowering the disparity of income and uniform growth among various sections of society