PUBLIC FINANCE VERSUS PRIVATE FINANCE

The generic term of finance comprises a multitude of practical forms, apparently different not only from the targeted purpose, but also by the way of creating and using of the funds. However, finance is divided in two main forms: public finance and private finance. The public finance is trying to satisfy the common needs of the entire community which is administered by the constituted authority, while the private finance refers to the needs of a much more restrained community constituted through the voluntary association in lucrative purposes. In this paper we tried show the differences between the public and the private finance, their role and mechanism and which is the interdependency between them.