Public Choice
Fundamental Principles of Public Finance
Governments budget, businesses budget, and, although often unconsciously, individuals budget. Budgeting, a method for selecting an action to be taken from available options, is a nearly universal activity. Efforts to finance those actions are likewise universal; few valued resources are free, so any government, business, or individual must figure out some way to pay for what it uses. Because governments, businesses, and individuals must budget and finance these budgets in order to exist, the important first questions for public fiscal administration pertain to why governments exist and what distinguishes them from businesses and individuals, not why budgeting and finance should be studied.