Sources of public finance – Prices, Fees and Assessment & Loan

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Sources of public finance – Prices, Fees and Assessment & Loan

Prices: When Govt. engages in a business enterprise, it sells the service to the consumer at fixed price Govt. is not running these enter prices for profit, but it can increase the prices to minimize shortage of funds. Thus nowadays many activities like rail, road transport, shipping, electricity supply etc. are undertaken by Govt. By fixing the prices Govt. can earn income.

c) Fees and assessment: A fee is a payment made by a person to the Govt. on account of a special benefit received by him. E.g. patent fee, court fee, registration fee etc. Similarly, special   assessment i.e. a particular fee charged from persons by the Govt. e.g. for new canal, or a new rail-road etc.

d) Loans:
Loans are also raised by Govt. in emergencies like wars or to finance economic development plant. It may be raised from public or obtained from international financing agencies.

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