The aim of this book is to provide a rather more comprehensive wide-ranging treatment of public sector economics than is usual. It deals with theory, policy and practice within the broad context and attempts a more general integration of them than is found in most other texts. It recognises that students invariably study other subjects simultaneously with economics, aiming to provide more of a multi-disciplinary approach than is usually the case. Traditionally the term public economics has been applied to the package of those policies and operations which involve the use of tax and expenditure measures, while budgetary policy is an important part to understand the basic problems of use of resources, distribution of income, etc. There is a vast array of fiscal institutions tax systems, expenditure programmes, budgetary procedures, stabilization instruments, public debt policies, level of government, etc., which raise a spectrum of issues arising from the operation of these institutions. Further, the existence of externalities, concern for adjustment in the distribution of income and wealth, removal of poverty, etc., require political process for their solutions in a manner which combines individual freedom and justice.
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