ABSTRACT
The primary purposes of the public finance system are to supply the money for government purchase of goods and a factor service, to distribute free of charge to households and firms the government services that are produced through use of these goods and factors, and to finance and distribute transfer payments. Each public finance instrument, in a very broad sense of that word, was appraised in turn, in isolation from the other instruments. Conflict of goals is a common theme in public finance. In public finance linear programming has been developed thus far only in a very abstract manner, and if it is used by the policy-maker it will probably be employed only in lower levels of sub-optimization. The household or firm, in acquiescing in the government's use of a compulsory instrument, or in welcoming its use of a donative instrument, experiences a compulsory, or donative, change in its disposable income.
