Before discussing Public or Private Finances, we should know What is Revenue?
Generally, Revenue is the income of a person or organization that they earned. Public Finance or Private Finance deals with the ways of income and expenditure in their respective field. The major aim is the theory of getting maximum welfare, profit, and benefit in spite of smaller income sources. They will keep in mind the uncertainties, therefore they intended to save more money.
Difference b/w Public and Private Revenue
There are certain clear differences between both concepts which are as follows
Earning and Spending Procedures
A common man or an individual plans his budget according to his/her income. He/She tries to sketch out his budget plan like his/her expenses do not exceed his/her income. If income increases he/she will increase expenses likewise if income reduces he/she will cut off expenses. While Government first figured out its expenditures and then decide its sources of income. If government did not meet expenses, it levied more taxes to bear expenditures. That,s how the public and private revenue differs from each other
Public and private revenue differs with respect to time. A common man does not plan his budget according to the time period, because some earn on daily basis, and some are earning on monthly basis. Farmers earn income at the time of harvesting. While government prepares its budget for income and expenditure for 1 year. Therefore, Private finance is not bound by time, unlike Public finance.
Internal and External Loans
There is a difference between public and private revenue with respect to internal and external loans. Government can take loans from internal or external sources i.e donors or investors while the common man/Individual can not do so. They will borrow from their friends or family member to some extent
Government can increase its money by printing extra currency notes without any guarantee which often leads to inflation ( more circulation of money increases prices) while a common man can not do so. A common man is not allowed to print extra currency notes.
Future Development Plans
A huge difference between public and private finance while planning future development goals. Government can plan future development according to income level. Such as constructing barrages, improving infrastructure, constructing health, and education institutions, and many more While a common man hardly plans his future goals for development. He hardly saves the amount to meet future needs
A common man is in favor of a surplus budget. i.e income is greater than expenses. But the surplus budget is not good for the government because it means that the government has increased taxes for more revenues and not spending on the welfare of people. So, a Balanced budget is considered good for the government.
Government can maintain a record of its expenditure and income. While a normal man can not do so.