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
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