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1. Public Finance – Basic Concepts, Ties and Aspects

1. Public Finance Basic Concepts, Ties and Aspects Aim of this chapter to introduce to the issue of Public Finance ; to present Basic concepts of this topic and learn about their contents; to understand the linkages of Public Finance on economic theory. Key words Public Finance , Public sector, Public revenues, Public expenditures, functions of Public Finance , collectivism, individualism, allocation function, redistribution function, stabilization function, market failure, Lorenz curve, Gini coefficient, non-optional, non-refundable, non-equivalent.

1.1 Basic Concepts, Ties and Aspects Public finance as a concept may be understood on two levels – 1) as a practical activity of all components of public administration and 2) as a theoretical area. The term “public finance“ may be defined as the identification of specific financial relationships and functions running between public

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