I’m Applying For A Job, And One Of The Selection Criteria Question Is Re: Public Sector Finance. What Is It?

I’m applying for a new job, and one of the selection criteria question is “Understanding and knowledge of Public Sector finance and accounting procedures, and administrative computer systems.” Can anyone tell me what public sector finance is, and what I should mention in the answer? Thanks

1 comment to I’m Applying For A Job, And One Of The Selection Criteria Question Is Re: Public Sector Finance. What Is It?

  • Broadly, finance can be classified into three fields:-
    (1)Public Sector Finance: Financing in the government or public level is known as public sector finance. Government meets its expenditures mainly through taxes. Government budget generally don’t balance, hence it has to borrow for these deficits which in turn gives rise to public debt.
    (2)Business Finance: It tries to optimize the goals (profit, sales, etc. of a corporation or other business organization by estimating future asset requirements and then allocating funds in accordance to the availability of funds.
    (3)Personal Finance: It basically deals with the optimization of finances in the individual (single consumer, family, personal savings, etc.) level subjected to the budget constraint. Eg. A consumer can finance his/her purchase of a car by taking a loan from any bank or financial institutions.
    Public Sector Finance
    Government finance (or, Public Sector Finance as it is commonly known, deals with the allocation of resources in accordance with the budget constraint of a public sector organization, especially government. As the objective of the government is not profit maximization but welfare so, it is usually noticed that government expenditure exceeds the revenue. Hence a budget deficit is a common phenomenon in government entities. This leads the concerned entity to borrow which in turn leads to public debt. Public debts are mostly marketable securities which are issued by the government. These securities make specified payments at specified times to the concerned holders of the same. Public sector entities can issue bonds (revenue bonds, increment bonds) which may give tax advantage to its holders. Main source of revenue of the government comes from the different forms of taxes (income tax, sales tax, etc.
    Public Finances Databank
    The Public Finances Databank is a compilation of published data covering the main aspects of the Government Finances including receipts, expenditure, borrowing and debt. All the data are presented in clearly defined tables and charts which provide a quick and easy way of assessing past performance as well as showing forecasts for the future. Many of the data fields go as far back as the 1970′s with the latest Treasury forecasts stretching to 2008-09.

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