Public Finance is the branch of economics studying government revenue, expenditure, and their effects on economy and individuals. Scope: Public revenue (taxation, borrowing, investments), Public expenditure (infrastructure, welfare, defense), Public debt (managing government borrowing), Budget (annual revenue and expenditure plan), Fiscal policy (using taxation and spending to influence economy), Transfer payments (welfare programs, pensions, subsidies). Objectives: Raising revenue, Redistribution (reducing inequality), Economic stabilization (growth, employment, price stability), Allocation (providing public goods), Regulation (controlling market behavior). Methods: Progressive taxation (higher earners pay higher rates), Public expenditure on welfare and development, Public enterprises, Subsidies and incentives. Distinction from private finance: Mandatory participation (taxation), Social objectives (not profit), Long-term planning, Accountability to public. Indian context: Government revenue through direct taxes (income tax) and indirect taxes (GST), Expenditure on education, health, infrastructure, defense, interest payments. ICAI focus: Components of public finance, objectives, distinctions. Exam tip: Public finance is broader than taxation; includes all government financial activities.