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Difficulty: MediumMeaning and Objectives of Public Finance

The scope of public finance is strictly confined to central tax collection, excluding public expenditure, debt management, and financial administration at state and local government levels.

Answer: Answer

Answer

False. Public finance encompasses revenue generation, public expenditure, public debt, and budgetary control across all tiers of government.
The statement is false because public finance covers all financial activities of government authorities—including revenue raising, public spending, debt management, and fiscal stabilization—at national, state, and local levels.

Step-by-Step Solution

1
Analyze the scope and meaning of public finance.
Public finance is the branch of economics that deals with the revenue, expenditure, debt, and overall financial administration of public authorities.
Establishing the complete definition reveals whether it is restricted solely to central taxation.
2
Evaluate the functional and jurisdictional coverage of public finance.
It covers both spending and borrowing functions alongside taxation, and applies to federal, state, and local authorities.
Government financial policies operate at all administrative levels to achieve resource allocation, income redistribution, and economic stability.

Key Concept

Scope and Meaning of Public Finance
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Topics

Meaning and Objectives of Public Finance

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