Public finance is the branch of economics in which we study the role or the intervention of government in the economy and evaluate the government revenues and government expenses of the public authorities and make amendment to achieve desire results, the term finance is money resource e.g coins, cash etc. now a day its important has been increased because without money neither government nor an individual can survive especially in underdeveloped country like Pakistan for the execution of many project like education, health or the industrial and agriculture development lack of funds are the main constraint. In public finance government role cannot be neglect.
It can overcome inequalities from the capitalist economy which can be achieved through the transfer of purchasing power from rich to poor. Public finance enables the government to spillover the side effect of the market economy. Pollution is a spillover because it affects people who are not responsible for it. To correct a spillover, governments can convince or restrict certain activities. For example, governments can sponsor recycling programs to encourage less pollution, pass laws that restrict pollution, or impose charges or taxes on activities that cause pollution. So we can say that public finance is an important instrument to control the state economy.
