ICSE Class 10 Answered

Similarities between public finance and private finance are:

1. Public and private finance have almost the same objectives. Private finance aims to satisfy individual wants whereas public finance tries to satisfy the wants of all members of a society.
2. Limited resources are available to satisfy wants. Both private and public sector’s primary aim is to maximise the utilisation of limited resources.
3. Both private and public finance have to look into the income and expenditure statements. According to priorities, both public and private finance have to raise the sources of income and allocate funds among different heads of expenditure.
4. Both public and private finance have to borrow to bridge the gap between expenditure and income.