Public finance is a branch of economics that evaluates government revenues and expenditures of public authorities. It is an avenue enables us to know the roles that government should play in an economy. Adam Smith, a well known economist defines public finance as an investment into the nature and principles of public (state) revenue and expenditure. Public finance is purview to be of three folds of government roles which includes: Allocating resources efficiently Income distribution Macroeconomic stabilization Public finance embraces the use of fiscal policies. Fiscal policy is the use of government revenues (especially taxes) and government spending (expenditures) to control the economy. It uses interest rate and money supply to influence the economy. Fiscal policy is usually embedded in the budget and it is meant to create a healthy economic growth in a country. Functions and objectives of public finance Public finanne plays various roles in an economy. Below are s...