Peacock and Jack Wiseman advanced the study of growth of public expenditure through Peacock Wiseman Hypothesis by their study of public expenditure at Great Britain during the period 1890 to 1955. Peacock Wiseman Hypothesis focused on the pattern of public expenditure and stated that public expenditure does not follow aRead More →
Financial activities of the government have a significant impact on the production, consumption, distribution and income pattern of a country. The Principle of Maximum Social Advantage is the principle that governs the operation of public finance (financial activities of the government) to maximize the economic welfare of the society asRead More →
The law of increasing state activities states that with economic growth and development a nation will experience an increase in the activities of public sector. The ratio of increase would raise the output per capita i.e. ratio of public consumption expenditure to Gross Nation Product will rise and hence GNPRead More →
The economic effects of taxation can be studied under heads. They are: Production Distribution Inflation Depression Consumption Employment According to Dalton, “The best taxation from economic point of view is that which has best or the least bad economic effects” While the classical economists considered tax as a source ofRead More →
Incidence of tax refers to the final resting place of tax payment. It is concerned with the analysis to determine on whom the money burden falls or rests. The person who directly pays the tax to the government, feels the impact of tax. Hence, impact of tax is concerned withRead More →
Performance Budgeting refers to a budget in terms of functions, programmes and performance units (functions, activities and projects) reflecting the revenues and expenditures of an Organization or Government. Performance Budgeting refers to a budget in terms of functions, programmes and performance units (functions, activities and projects) reflecting the revenues andRead More →
Meaning of Deficit Financing Deficit Financing may be simply defined as the excess of expenditure over and above the total income of the Government. The term “Budgetary deficit” can be defined in two ways. – One from the perspective of advanced countries like USA – Budgetary deficit is the loan financing ofRead More →
Taxation refers to the act of levying taxes on the citizens of a country through a well-defined tax structure developed by the government of the country. A Tax is a compulsory payment made by the citizens of a country to the government to meet expenditures of public authorities and for theRead More →
Canons of Taxation are the fundamental principles of taxation which are used to create an effective taxation system in a country. Canons are basically characteristics of a good taxation system. A government must incorporate these canons of taxation when developing a tax structure & system in order to make theRead More →