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Public finance

Public finance Definition

"Public finance" (government finance) is the field of economics that deals with budgeting the revenues and expenditures of a public sector entity, usually government. Governments, like any other legal entity, can take out loans, issue securities and invest. Based on the taxing authority of the entity, they issue bonds such as tax increment bonds or revenue bonds. A "public bond" or security may give tax advantages to its owners.








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