Public Finance system is the most important part of every country. The government spends money on different sectors for providing services to the people. There are two types of funds in a country. One is central fund and other is state fund. Central fund is used for general expenditure whereas state fund is used for the state’s specific needs.
Types of funds:
There are two types of funds which are used by the government. These are central fund and state fund. Central fund is used for general expenditure whereas state fund is used for the state’s specific needs.
Central fund:
Central fund is the biggest fund in a country. It is used for general expenditure. The government spends money on different sectors like health, education, defence, agriculture, etc. for the people. Central fund is used for the purpose of national security and development.
State fund:
State fund is also known as state’s own fund. It is used for the specific needs of the state. For example, if you want to build a school or a hospital then it will be used for that.
Government’s role:
The government is responsible for running the country. It is responsible for providing services to the people and maintaining the law and order in the country.
Conclusion:
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