Presentation on

Public Administration
Topic: Financial
Administration(Unit
3:1)
What is Finance and
Adminstration?
According to the English Oxford Dictionary Finance is “the activity of
managing money, especially by a government or commercial organization” where as
administration refers to the process of running an organisation, office or business.
This includes creating rules & regulations, making decisions, management of
operations, creating organisation of staff/employees/people to direct activities
towards achieving a common goal or objective.
We can say that Financial Administration includes all the activities which
generate, regulate and distribute monetary resources needed for the sustenance and
growth of the members of a political community
Importance of Financial
Adminstration
A large number of undeveloped countries of Asia and Africa have received
foreign aid but in practice it has been found that the receiving countries have
dismally failed to properly utilise the funds and there has been no change in
development sphere. This failure can reasonably be attributed to the improper
management of financial administration and lack of good governance.
So in the light of the above analysis we can throw light on the concept of
financial administration. The central part of financial administration is the
preparation of budget a logical estimate of income and expenditure during a
financial year.The estimate of income and expenditure shall be placed in the
legislature for its approval because in democracy the government has no power to
spend a single paisa without the consent of the legislature. Financial administration
also gives an explanation of its budget. The nature of the governance largely
depends on the logic of financial administration. In India and many other
developing nations are giving emphasis on financial administration and good
governance as precursor to progress.
Types of Financial Organisations
There are of two types.
I. Public Finance: Public finance can be defined as the study of government
activities, which may include spending, deficits and taxation. The goals of
public finance are to recognize when, how and why the government should
intervene in the current economy, and also understand the possible outcomes of
making changes in the market.
II. Private Finance: Its can be defined as the study of income, expenditure and
activities of the private individuals and private entities.
Scopes of Financial Adminstration
• Financial planning
• Budgeting
• Resource mobilisation
• Investment decisions
• Expenditure control
• Accounting, Reparting and Auditing
Conclusion
From the previous points mentioned we came to the conclusion that
a good financial administration is required for the development of the
state and that it also functions as one of the powerhouse of the state.