Public finances

The public finances indicate the study of the rules and the operations relating to the Public money. According to the organic criterion, public finances can also be presented like the whole of the rules controlling the Finance S of the State, of the Local government agencies, the organizations of Social security, the public corporations and all other moral persons of public Droit. It is a field with crossed tax Droit, constitutional Law, as well as Public accounts.

Definition, field of application

Inside the general sector of the Finance, that of the public finance relates to the financing, the Budget and the comptablity:

of the intergovernmental organizations, regional level (European for example) or world, in particular the ECB, EIB, the the IMF and the the World Bank. It is there the ground of the international Public finance
of the State S and others territorial collectivities (areas, departments, communes). in the majority of the countries, the central Institution as regards public finance is the Ministry for finances,
of the central banks,
of the para-étatiques organizations (e.g. Social security, public services not conceded with private…).

Principles

Public finances often follow five great principles:

the budgetary Principle of yearly recurrence,
the budgetary Principle of unit,
the budgetary Principle of universality,
the budgetary Principle of speciality,
the Principle of budgetary sincerity.

It is the case of the French public purses.

The public budget: procedure, resources, expenditure

An annual procedure of adoption of the Budget of the State is in many countries one key period of the parliamentary life. The resources and expenditure to be considered are the following ones:

the essence of the public resource comes from the taking away/obligatory contributions (taxes, taxes, contributions special taxation) often supplemented by loans.

The lifting of certain taxes is carried out by means of the stamp either postal, or tax fixes (stamped paper) or tax mobile.

the public expenditure relates to operation, the investments and the redistributions.

Balance in the budget and national debt

The balance of the public resources except loans and of the public expenditure is the public Excédent or the Public deficit of the year)

To judge financial health of an local government agency, one can look at the ratio

Ressources except loans/expenditure

Various ratios make it possible to judge financial health of the public administrations as a whole:

Public deficit/GDP,
national Debt/GDP,
Load of the debt/GDP,

And of their influence on the economy:

Public expenditure/GDP
Taxes and social security deduction/GDP

Patrimonial aspect

In the majority of the countries, as much the Budget of the State, which describes flows of expenditure and receipts, is largely detailed and discussed, as much the patrimonial aspect generally little is studied and revealed.

the aspect " Passive " (Debt of the State) generally is quantified and communicated, but often incompletely (for example few indications on future engagements rising from the Décision S policies and social)
the aspect " Active " (inheritance of the State), that it is of the real goods, the economic credits (body and incorporeal) and about the situation of the Trésorerie, seldom is quantified with precision and even less published.

France

See too

Ministry for finances

Simple: Public finances

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