public finances

Public finances refer to how governments manage their revenue—mainly taxes and other income—and their spending on public services like healthcare, education, infrastructure, and defense. Effective management ensures that the government can fund essential services, reduce debt, and promote economic stability. It involves budgeting, taxation policies, and borrowing, all aimed at balancing income and expenditures to support the country's economic health and the well-being of its citizens. Good public finances help ensure resources are used efficiently to meet public needs without causing excessive debt or inflation.