Question

A concept of public finance is the government “enterprise.” How does it differ from general government and what implications does it have for 1) revenue sources and 2) financial accountability?

Answer 1

It is different from general government in few factors such as Expropriation, Conscription, Regulation and certification.

1.Revenue-Governmentspending is of course the most traditional and obvious instrument. Botht the level of public spending and its structure or composition are important and can beconsidered as separate instruments.

2.Financial Accountability(Tax indulgence) - Taxes are other obvious instrument. But taxes comprise at least four potential and
separable instruments, such as the level of taxation, the structure of taxation, tax
expenditures and tax incentives. All of these have been used, but some countries rely
more on levels and structures while others have relied more on tax expenditures and on tax incentives .