Abstract
This chapter deals with the means by which government raises revenue and expenditure profile. Public finance explains the sources of government revenues and the ways in which revenue is allocated to give maximum benefits on the entire society. It cuts across public treasury operations into economic policies on financial transaction of government bothering on revenue, expenditure and public debts. It also attempts to provide the criteria, with the help of the marginal utility analysis, which determine the revenue and expenditure policies of the government. In response to the advances in technology, the author delves into Public finance in a digital economy to highlight the new trends and emerging issues. Areas covered include: (1) Rationale for government public finance; (2) the functions of theory of public finance (3) sources of government revenue (4) items of government expenditure (4) public debt (5) government budget (6) fiscal federalism and economic growth(7) e-government and e-commerce (8) digital economy (9) emerging trend in digital economy and finance. In response to the advances in technology, the work highlighted the new trends and emerging issues on innovative inclination of sharing advances in the economy using new business models based on big data, cloud computing, virtual reality, artificial intelligence, smart city applications, blockchain technology, online/mobile internet banking and third-party payments. The array of topics covered is recommended for rewarding learning experience.