Business Studies XI Content
Difference Between Private And Public Finance
Private finance (individual) | Public finance ( government) |
An individual adjusts his or her expenditure according to his or her income. | The public authority adjusts its income to its expenditure. |
A private individual tries to have a surplus of income over expenditure i.e. surplus budget.
| A public authority will spend all that it gets |
An individual can borrow money from other individual only and externally | A public authority esp a state can raised loans from both internally |
Finances of individuals are limited | Finances of government are flexible |
Private individuals cannot use force to get their income; they cannot compel others to get income | The government can use coercive method to realize revenues |
Not a single individual can print notes | A state can print currency notes in order to meet its expenditure in difficult times |