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Municipal Public Finance-Principles

Finance - Introduction. Finance is an all pervading activity. A thread running through all affairs.Can not be hived off into single section or regarded as a separate aspect.Every one of us uses resource.A judgment about like benefits and cost incurred (Decision Making) is inevitable.. Finance -

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Municipal Public Finance-Principles

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    1. Municipal (Public) Finance-Principles

    2. Finance - Introduction Finance is an all pervading activity. A thread running through all affairs. Can not be hived off into single section or regarded as a separate aspect. Every one of us uses resource. A judgment about like benefits and cost incurred (Decision Making) is inevitable.

    3. Finance - Introduction Limited resources - unlimited wants. Application of limited resources to competing ends offering different advantages. Weighing allocation of resources to one or more purposes against the relative benefits of devolving resources to competing ends. Dynamics of ‘finance’ form core of municipal finance like any other activity of our life. But it is not for ‘private interests’ but for ‘public interest’.

    4. Finance - Principles Dynamics of ‘finance’, dictate certain hard realities not to be overlooked by municipal finance or public finance Everything has cost. There is no magic wand to wipe out cost. Cost recovery first and foremost objective Failing that minimisation of loss is the next objective Maximisation of returns whenever and wherever possible

    5. Finance - Principles Final objective is maximisation of wealth, one need to create wealth to distribute it Cost not born directly by somebody has to be born by him indirectly or directly and indirectly by somebody else. Best instrument of cost mitigation or recovery is pricing (user charges) but it is fundamentally regressive as consumption is not good indicator of income

    6. Finance - Classification

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