The term ‘Fiscal Economics’ is a new one; the old and popular term of the subject is ‘Public Finance’. The subject Public Finance is related to the financing of the State activities and it discusses the financial operations of the Government treasury. The term fiscal is derived from Greek word which means basket and symbolizes the public purse. Hence the subject ‘Public Finance’ has been newly termed ‘Fiscal Economics’.
Public Finance studies the manner in which the state raises and spends the resources. The state is concerned with the collective wants of the citizens.
The modern state is a welfare state. The activities of the state have increased extensively and intensively. To perform these activities, the state needs funds. This chapter deals with the Public Revenue, Public Expenditure, Public Debt, Budget, Federal Finance and Local Finance.