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In this research we'll talk about public finance and discus the definition of public
finance through the opinions of some authors and the ages of public finance, also
well discus the effect of public finance in government and people and how the
At the beginning We all know that government needs money like individual to
provide goods and services for the people who lives in their country, But the
difference between govern and people is that the government gets its money mainly
The term of public finance start in the last of middle ages when the expenditure in the
country is exceeds the revenue that they have or collect, so all country start to
charging common cost in all of people. The aim of the public finance science was to
provide the necessary revenues to feed the state's expenses. However, this view
new concept of the role played by the state in social and economic affairs, also there
is a relationship between the science of public finance and other science like legal
,political and economic science Because public finance has become the main means
and the state has found in fiscal policy a way to implement its policy and achieve
1-Public finance deals with the raising and spending with government fund.(Plehn,
1902)
2-Public finance is the study of the role of government in the economy its defined
around four question : when should governments intervene? How should government
intervene? What is the impact of government intervention in the economy? And why
3-Public finance is the study of how government taxes and expenditures affect the
4- Collection of taxes from those who benefit from the provision of public goods by
the government, and the use of those tax funds toward production and distribution of
Therefore, we conclude that public finance is related to the revenues and the methods
guarantees the provision of goods and services to citizens and the role of governments
The concept of public finance in the past was not the same as the current concept. The
ancient kings used the concept of public finance to spend on themselves and those
.who sacrificed them and not to serve the state and the people.
And then some writers like Aristotle, for example, who appeared to talk about state
finances, and also included some of the old covenants after the rules on taxes and
methods of collection and its relationship with the revenues of the state.
In the Middle Ages, the state did not have any involvement in financial affairs and
especially in Europe. The church was mainly responsible for the management of
funds and collecting them in the state, so that the government would disappear its role
and existence completely. When Islam come, the financial basis was based on the
Sunnah and the Holy Quran. There was a money house for Muslims to record the
The contemporary concept of public finance emerged after the Industrial Revolution
in France and England and began to be the subject of books and books such as the
book of the revolution of nations to Adam Smith and the spirit of the laws of
Montesquieu.
Then after World War I and after the Great Depression in 1929 there was a shift in the
science of public finance led to the emergence of works that worked to resolve this
a-the size of government sector: The larger the size of the public sector, the higher its
expenses and this will lead to a decrease in the rate of growth in the long term due to
increased expenditures for the operation of the public sector. Small governments may
also fail to grow in the long term due to poor planning and lack of a base on which to
grow. (Johansson,2016)
such as research and development, this leads to the development of economic growth
in the country, especially when the market is in a state of failure of the private sector.
(Johansson,2016)
c- The composition and design of the tax system: Taxation can increase the rate of
growth because modern tax designs are more favorable to achieve this growth.
However, there are still disincentives to the growth sector, such as taxes that limit
human and physical capital that may reduce growth over the long term.
(Johansson,2016)
d-fiscal framework: Supports the growth in the state to the extent that the public
finances in the state in the best image and in a sustainable situation and play a role in
achieving economic stability in the country and usually achieve better budget results