3 Indian & AP Economy and Planning · 3.4.5 Public finance

3.4.5.1 Public finance basics: functions of government and public goods

Public finance studies how a government raises money, spends it and borrows, and the budget does three jobs: it supplies what markets cannot (allocation), shares income more fairly (distribution) and steadies the economy (stabilisation).

  • APPSC Group 1
  • Advanced level
  • 6 min read
  • Full course

Key terms

  • public finance
  • allocation
  • distribution
  • stabilisation
  • public goods
  • merit goods
  • free rider
  • externality
  • market failure

What this note covers

  1. Core factsFoundation
  2. ExplainedStandard
  3. DeeperAdvanced
  4. Mains writingMains writing
  5. Common trapsFoundation
  6. Quick revisionFoundation

Read the full note in the app. It is part of the APPSC Group 1 full course in Medha AI. Free in the app: the first chapter of each topic.

Read the full note in the app Indian & AP Economy and Planning questions with answers

All Public finance notes · APPSC Group 1 syllabus · APPSC G1 Paper I Mock 1 with answers · Start free

Medha AI writes its own notes and checks them against the sources listed. Medha AI is an independent preparation service. It is not affiliated with, endorsed by or connected to APPSC, TSPSC, MPSC, UPSC or any other commission or government body.