Question

“The National Budget provides the central focus of all discussion on Public Finance”. Discuss the statement with particular reference to any budget process you are familiar with. Support your discussion with practical examples.

Answer 1

National budget is focused at management of the public finance,because the national budget is is generating the income through various types of taxes and it is focus at allocation of those taxes on the public development and other public projects so that there should be proper balancing of all the incomes and expenditures and all these are part of the public finance.

public finance is related to management of the finance by the government when the taxes which have been collected by the government is apportioned on various criterias between various public project so that the benefits accruing to the general public would be highest and this can be done through proper allocation through highly efficient budget which is optimised at maximization of welfare of public.

Budget process I am familiar with is,management of my monthly budget expenditure and income by setting realistic goals and identifying my nature of income and expenses and then I will be separating the needs and the wants and designing my budget and putting my plans in the action and then I will be taking corrective measures when there would be a deviations of actual from standards.