New Century's Dictionary of Public Finance

The government is big and important in our times. We depend on the government to protect ourselves against external aggression, internal disorders, pollution, epidemics, social injustice, exploitation, unemployment and poverty. Furthermore, a government is expected to (a) provide educational, medical and housing facilities, (b) build roads, bridges and communication networks, (c) ensure personal freedom and enforcement of contracts and (d) maintain democratic institutions and cordial relations with foreign countries. Though the list is not exhaustive, it does provide an idea of the amplitude of the multifarious activities of modern governments. Public finance, as an important branch of economics, deals with government budgeting, taxation, public expenditure, borrowings, deficit financing, and intergovernmental financial relations. This dictionary contains a careful selection of key terms and concepts in public finance.