SS2 ECONS LESSON 4 PUBLIC FINANCE Public finance is an aspect of Economics which deals with government revenue and expenditure. An economy is the state of a country in terms of the production and consumption of goods and services and the supply of money. Government intervenes in an economy basically through: 1. Fiscal policy(Public Finance) 2. Monetary policy(Banking system, Central Bank and Specialized Institutions) 3. Direct control ( This topic is only focusing on fiscal policy) FISCAL POLICY This is government’s deliberate attempt to use tax and expenditure to control economic activities. Objectives of Fiscal Policy 1. To achieve full employment 2. General price stability 3. Optimal growth rate. 4. Income re-distribution. 5. Ef...