Pros and Cons of Public Finance

Public finance is the study of the role of the government in the economy of the country. It assesses the government revenues and expenditures of the public authorities and the adjustment of others to achieve desirable effects and avoid undesirable effects.

It is divided into various branches and these include the expenditure, the revenues, the debts, and the financial administration.

Pros and Cons of Public Finance

Pros of Public Finance

  1. It increases exposure

Public finance increases the exposure of the public to the finance and this makes it possible for investors to get access to the finances which will make them exposed very much.

  1. They can award large grants

Public finance has more money and can easily award large sums of money hence easy for the members of the public to benefit from public finance.

  1. Easier to find information

It easier for the public to find information about the money they need and this may make them sure of the amount of money they can receive from the public funds hence easier to budget for the money before going for it.

  1. Straight forward application dates and procedure

The members of the public are given the deadline on which they are supposed to submit the application and the procedure of applying is straight forward.

  1. Possibility of renewal is made known

The members of the public can know if there will be a renewal of the application and this makes it easier for the members of the public to know how often they will access the funds.

  1. Sometimes it is accompanied by workshops and seminars

Members who may wish to apply for the funds are assisted by organizing for workshops and seminars and this may make the applicants away from the terms and conditions that are to be accompanied by the application of the funds.

  1. They create multiple financing opportunities

This is done by giving the applicants opportunities such as cheap bank loans that will encourage more members of the public to take the funds.

Cons of Public Financing

  1. There can be disapproval of the application

This hinders the continuation of the project as the applicant will not have other funds to move on with the project hence there is no guarantee that if the member applies then he or she can get the funds.

  1. There are guidelines that the applicants have to abide by

Sometimes the guidelines are usually tough in that they discourage the applicants from getting the money hence not an easy way of acquiring funds from the public.

  1. It is a long process to apply

The public finding is straight forward but it is a very long process to make the application hence it discourages members who would like to go for the funds.

  1. There is biasness

Some members will automatically be given the money regardless of them meeting the requirements or not hence a lot of corruption is experienced in the field of public financing.

  1. They can be affected by political trends

Sometimes when the political trends change then some individuals will not be able to be given the money as the industry will have other new staff in the office.

  1. Too much dependency on the funds

When there is too much dependency on the funds it may make the program fail because they will require a lot of benefit from the applicants hence discouraging people from going for the funds.

Summary

Public financing is good and straight forward but a few of the things should be worked on such as corruption and biasness to encourage more members of the public to take the funds which will, in turn, improve the economy of the country.

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