There are various components of public finance. These are:
a) Public revenue
Under this component we discuss taxation and its effects on the economy. Secondly, there are non-tax sources of public revenues such as interest receipts, fees, grants and fines.
b) Public Expenditure
This is a tool for implementing welfare and other policies.
c) Financial Administration
It involves issues of financial administration such as public budget, its approval and financial implementation.
There are also the oversight and control systems associated with financial administration.
d) Multi-layer government finance
This is the study of the multi-layer system of government which necessitates a division of function and resources between the layers of government.
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