Public finance is the sphere of financial relations which appeared with the distribution of GDP and the part of national wealth and is related with the use of the state financial resources for the organization of the appropriate life in the country – broadening of production, satisfaction of the cultural and social needs of the citizens, national defence and public administration. Public finance is a broad sphere which works on all levels of the country’s life – national, regional and local. Public finance includes such services and elements as budget, extrabudgetary funds, state credit, finance state and municipal enterprises. Public finance is probably the most important indicator of the country’s prosperity, because the government donates money into different spheres of the social life – transportation, hospitals, recreational areas, cultural events, development of infrastructure, construction of various buildings for public services, etc.
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If the country is enough rich and there is no corruption in its government, it will be easy to notice that the infrastructure, roads, public transport, the quality of the public services (the police, healthcare service, fire service, etc) is high due to the reasonable use of public finance. The major role of public finance is to improve the human life, because the state budget is the money of the citizens of the country and if one pays taxes all the time, he wants to see the definite positive results and constant progress in the sphere of public administration maintained by public finance. All in all public finance is the collection of the finance of the country, which includes taxes, loans, investments, etc and its aim is to improve the public sector of the human life.
Public finance is a useful topic for the research which provides students with the opportunity to learn about the structure and purpose of public finance in order to understand the economic system of the country. The student should study the elements of public finance, the sources of finance, the purpose of public finance and the functions which it performs. Moreover, the student will have to dwell on the issue of public finance management in order to learn about the appropriate control of the government over the state budget of the country.
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