Quality in all functions

For an organization to be truly effective, each of its components must work properly together. Each part, each activity, each person in the organization affects and is in turn affected by others. Errors have a way of multiplying, and failure to meet the requirements in one part or area creates problems elsewhere, leading to get more errors, yet more problems and so on. The benefits of getting it right first time everywhere are enormous.

Every experiences-almost accepts-problems in working life. This causes people to spend a large part of their time on useless activities – correcting errors, looking for thing, so on. The list is endless, and it is estimated that about one-third of our efforts are still wasted in this way. In the service sector it can be much bigger.

Quality, the way we have defined it as meeting the customer requirements, gives people in different functions of an organization a common language for improvement. It enables all the people, with different abilities and priorities, to communicate readily with one another, in pursuit of a common goal. Business is now so complex and employees so many different specialist skill that everyone has to rely on the activities of others in doing their jobs.

Management that rely heavily on exhortation of the workforce to do the right job right the first time, or accept the quality is your responsibility, will not only fail to achieve quality but may create division and conflict. These calls for improvement infer that problems are departmental or functional when, in fact, the opposite is true – most problems are interdepartmental. The commitment of all member of an organization is a requirement of organization-wide quality improvement: everyone must work together act every interface to achieve improved performance and that can only happen if the top management is really committed.

Thank you

prepared by: Puja keshari

  

Building the Quality

The quality can be build through two ways,

i)Quality of design:

the quality of design is based on the use of market research to identify the product characteristics which commute quality to customers. Quality design begins with customer research and sales call analysis and is followed by the development of adequate specifications, here the focus is to develop products and service that can meet the customer needs at a given cost. This process of developing a product demands effective cross- pollination of idea among the marketing, sales, services, manufacturing, research and development department. Consumer research and service call analysis are at the customer needs, both current and future while sales call analysis investigates the problems users face with the way the product performs.

ii) Quality of conformance:

quality of conformance deals with translating user based characteristics into identifiable product attributes. It refers to the stent to which a firm and its suppliers can create products with a predictable degree of dependability and uniformity at a given cost in keeping with the quality requirements determined by the study on quality of design once the specifications have been, organizations must continuously strive to improve on these specifications.

Thank you

prepared by: Puja keshari

Managing quality

Managing quality means to identify and administration activities needed to achieve the quality objectives of an organization. It is important to understand quality management which is concerned with controlling activities with the aim of ensuring that product and services are fit for their purpose and meet the specifications.

There are two main part of quality management,

a)Quality is a measure of how closely a good or services conform to the specified standard.

b) Quality standards may be any one or combination of attributes and variables of the product being manufactured.

To achieve the quality there is need of a series of activities of checking, testing, inspecting or measuring – the ritual pouring on of quality throughout the process and it must be an integrate part of the production process.

To get away from the tendency to such into the detection the fault, it is necessary to use the standardized method, appropriate supply chain technique, appropriate design and documentation, materials and equipment, suitable skills, instruction and leadership, and a satisfactory overall process.

Thank you

prepared by: Puja Keshari

Quality starts with understanding the needs:

It is obvious that cannot survive without satisfying customer. Satisfaction is a person’s feelings of pleasure or disappointment resulting from comparing a product’s perceived performance (or outcome) in relation to his or her expectations.

Satisfaction is the customer’s entire expectation with product, service and associates that determines his or her deliration of satisfaction. Satisfaction is based upon the customer’s perception of the experience. This perception is his/her interpretation of the value received played back against expectations. Interactions with the customer, the promise made to the customer in there conversations, the customer expectation generated in these conversations, and the actions we take that are consistent with those expectations combine to produce a declaration of satisfaction.

Therefore, it is essential to manage these aspects of business in a proactive manner to excel at customer satisfaction. The organization should always try to meet the external customer’s needs and as many of their wants as possible. There are a variety of ways in which we can identify an external customer needs.

• ·       By discussion their needs with them
• ·       By asking for customer feedback
• ·       By analyzing complaints
• ·       Through staff feedback
• ·       Carrying out market research
• ·       Through customer surveys 

        Thank you

      Prepared by: Puja keshari

Understanding and building the quality chain

Quality chain is the series of chain inter-relating different departments within and outside the organization. It is a continuous process. Quality chain is a continuing improvement philosophy.

The customer are the valuable assets for any organization. The success of the organization depends on the satisfied customer of it. The satisfied customer tends to purchase frequently and more. The customer satisfaction is one of the major criterion for quality management system. Since, customer satisfaction is subjective, it is hard to measure. Identifying the customer expectation is the key to satisfy the customer. If we can develop the concept of series of customer and suppliers in each work in process of the production line or in series, the ultimate product and service will be prominent. Such customer within the organization can be named as internal customer. An internal customer is a vital and unavailable factor in the organization. All function either engineering, order processing, or production has an internal customer each receive an product or service and in exchange provide a product or service.

In each level of customer there should be a basic question to be asked to satisfy them, they are: what do they need from me? What do you do within my output? And are there any gaps between what you need and what you get? The quality management system begins with the basic need of ensuring that the external customer’s requirements are adequately measured. Customer satisfaction will result in customer loyalty. The customer loyalty can be sustain only  by maintaining a favorable comparison when compared with  competitors.

Thank you

prepared by: Puja keshari

Quality, Competitiveness and customer

Quality is a key device to market share and quality have to be integrated to all aspects at a successful organization. Efficient production of quality goods and service is a challenge for most business today. It is a function to build product features and offers freedom from defiance while incurring profit by closing the customer gap and delighting the customer. Quality is the most important competitive weapons of an organization.

Competitiveness is the ability of an organization to compete with other organization. Organizations compete with one another in terms of quality, reliability, delivery, and price. The main objective of the organization is to satisfy customers and earn profit. Organization delights the customer by consistently meeting customer requirements and then achieves a reputation of excellence and customer loyalty.

Customers are those individual who buy the products or services of the organizations. Customers are always in search of such quality products which fulfill their need at minimum cost. Customers are satisfied when they get quality and reliable products or services.

In this world competition, it has become absolutely necessary for businessman to keep a continuous watch over the quality of the goods or service provided. Having once bought the product or getting served once if the customer feel satisfied with regards to its quality, price etc.

A kind of goodwill for the product or service is developed which helps to increase the sales. However, if the consumers are not happy with the quality of the product or services and their complaints are not given proper attention, it will be impossible for the manufacturer to be continued in the market.

thank you

prepared by: Puja keshari

Concept of Quality

Quality is a key driver to market share and quality will have to be integrated to all aspects of a successful organization. Efficient production of quality goods & services is a challenge for most business today. Quality is derived from the latin ‘qualita’ which means an attribute or a property. Quality refers to meeting the product requirements. Increasing the quality of conformance usually results in choosing the producers gap. It enables meeting the product requirements. It is the degree of fitness permitting use. It is a function to build product features and offer freedom from deficiencies while insuring profit by closing the customer gap delighting the customer.

        

 Quality can be defined under different heads.

i)Conformance to specifications: How well a product or service meets the large and tolerance determined by its designer.

ii) Fitness for use: A definition of quality that evaluates how well the product performance for its intended use.

iii) Value for price paid: Quality defined in terms of product or services usefulness for the price paid. It combines economic criteria.

iv) Support services: Quality defined in terms of the support provided after the product services are purchased.

Some writer definitions of Quality,

“Quality should be aimed at the needs of the customer, present and future.”

-         Dr. Edward Deming

“Quality is the degree of excellence at an acceptable price of variability at an acceptable cost.”

-Robert A. Broh

“Fitness for use or purpose is a definition of quality that evaluates how well the product performance for its intended use.”

-Josepb Juran

“Quality is meeting and exceeding the present and future requirements of the customer on a continuous basis.”

-Poornima Charantimath.

prepared by: Puja keshari 

Aim/Objectives/ Importance of public expenditure

The main objective of public expenditure are as follow,

i)Developmental work:

Modern governments have also taken up developmental work in addition to their primary functions of administration and defense. Government expenditure plays an important role for the development social and economy infrastructure of the country.

ii) Welfare promotion:

The state is no longer the old law and order state. The modern state is a welfare state. It has to spend increasing amount on such items as social insurance, unemployment relief, free medical aid, free education etc to improve the social and economic welfare of people.

Iii) Resources utilization:

There is under utilization of available resources in developing country. The public expenditure brings into the proper utilization of natural resources as it requires huge amount to spend that the general people cannot afford.

iv) Subsidies and grants:

The governments these days, give subsidies and grants to different industries to enable them to increase the production of essential goods in the country. These subsidies and grants have special place in the government expenditure of under developed & backward countries.

v) Reducing inequalities:

Government expenditure plays a vital role in reducing economic in equalities in the capitalist countries. For eg, the government can levy heavy taxes on the reached sections and spend the income on providing cheap food, cheap housing, free medical aid etc, for the poorer sectors of the society.

vi) check Inflation and Deflation:

Government expenditure as an instrument of fiscal policy, plays an important role in achieving price stability in the country during reception, increase in government expenditure leads to rise the aggregate demand and help to reception. Similarly during inflation, reduction in government expenditure decreases aggregate demand and helps to control inflation.

Meaning and concept of Public Expenditure

Government expenditure refers to the expenditure made by the government in different sectors of the economy through its different ministry, departments and local bodies. With the increasing functions of government the value of government expenditure also increases. But the real importance of public expenditure can only be realized when such expenditure shows the productive result in the society. The government of Nepal has classified the government expenditure under the following three headings.

i)Regular/recurrent expenditure:

Recurrent expenditure is the day to day expenditure of the government. It is incurred to run the administrative functions of the government. It constitutes consumption and service expenses, subsidies and grants, protection expenditure and contingency expenses. Among these, the expenditure made on consumption, subsidies and grants, service and production is found relatively higher than other expenses.

ii) Capital/Development expenditure:

The capital expenditure is the expenditure made by the government on

Various social economic infrastructures. It is related to long term expenditure on the development program. In Nepal, capital expenditure includes the expenditure made on capital transfer, capital formation, investment, capital grants and contingency expenses. The past trends show that government spend about 40% of capital expenditures under the heading “capital formation, and capital grants.”

iii) Principle repayment expenditure:

principle repayment includes the expenditure made by the government for the principle repayment of domestic and foreign loan. In Nepal the share of principle repayment of foreign loan is more than that of domestic loan.

The following table shows these three types of classification of government expenditure of Nepal,

Importance (Role) of public finance

There are many different role of public finance some are as follow,

1)Subsidies and grants:

The government these days gives subsidies and grants to different industries to enable them to increase the production of essential goods in the country. These subsidies and grants have special place in the government expenditure of under developed and backward countries. The provisions of subsidies and grants are possible only if governments have sufficient revenue.

2)Discourage the production of harmful goods:

The governments often impose high taxes to discourage the production of harmful goods such as cigarette, alcohol, opium etc. on the one side the governments collect higher revenue by imposing higher taxes on the such goods and on the other side it helps to reduce the consumption of these goods.

3) Protection of infant industries:

The infant industries are often given protection against the foreign competition through the traffic duties, in the backward and under developed countries. The objective of these duties is to enable the local industries survive and grow in the home country.

4) Planned economic development:

Public revenue also renders valuable helps in the planned economic development of the country. For eg, the government of india have raised the to implement the five-year  plan by levying various personal and commodities taxes.

5) Reducing economic inequalities:

Public revenue also plays a vital role in reducing the economic inequalities in the capitalist country. For eg, the government can levy taxes on the richer sectors and spend the income on providing cheap food, cheap housing, free medical aid etc to the poorer sections of the society.  

Historical development of tourism

Before knowing the world’s previous history about the tourism we must know about the tour and tourism. The tour means the activity lf traveling of tourist or travelers where tourism includes all the activity which is directly or indirectly related to operate the tour.
As far after knowing the term tour and tourism we must also know about the tourist. As per the question arises who are the tourist in this case the answer comes in this way the travelers who travels various places with different mission for certain period of time and generates economic expenses is known as tourist. This all above are the simple definitions regarding the Terms? The terms traveller, tour, tourist, and tourism have being developed sequence. The model of these terms is given below as figure.

Travellers         Tourist              Tour                 Tourism

·        Traveller: the person who used to travel in ancient period for their various special purposes like as hunting, food etc.

·        Tourist: persons who travelled in a mass or individually started to be called tourist.

·        Tour: when man became modern the concept of tour came where the concept of mass people travelling together in a package.

·        Tourism: the composite term which contained traveller, tour, tourist, entrepreneurs, intermediaries, suppliers, producer, demand creator, demanders various other activities etc. are included together which has the relation with tourism either directly or indirectly.

After the development of tourism concept the various definitions regarding tourism started to be explained. Where some of the definitions of professor, organization or people related to the tourism are given below:-

Sir Herman van scheullard, Austria (1910). He has defined tourism as: “the sum total of operations mainly of economic nature, which directly related to the entry, stay and movement of foreigners inside and outside a certain county city or region.”

AIEST (association of international scientific experts in tourism 1981) defined tourism as:

“Tourism may be defined in terms of particular activities selected by choice and undertaken outside the home environment. Tourism may or may not involve overnight stay away from the home.”

At last at 1993 UNWTO gave an official definition regarding tourism. “Tourism is an activity of a person travelling to and staying in places outside their usual environment for not more than one consecutive year for, leisure, business, or any other purpose.”

            History of international tourism (अन्तरास्ट्रिय पर्यटन को इतिहास )

Before in ancient age people used to travel for only food, hunting etc. purpose. They didn’t know anything about tourism. They weren’t civilized so they only travelled for their own purpose. They used to travel from one jungle to another jungle or place. The travelling is linked with the civilization of people. When the civilization was started the travelling was also started together. At that time there was only lone mode of travelling and that was walking. 

                        Later people became more civilized and they started to travel by riding in donkey, horse, yak, bull, etc. after more civilization on they got a new mode of transportation where animals were used as a mode of transportation.

1480 B.C.E.:- probably the first journey ever made for purposes of peace and tourism was made by queen Hatshepsut to the land of punt(believed to be on the east coast of Africa). Description of this tour has been recorded on the walls of the temple of deirel – bahri atLuxor.

1600 t0 1200 B.C.E.:- on the Greek peninsula of the Mycenaean’s, who flourished B.C.E. a two lane road 13.5 feet wide, ran from the coast ofCrete to the capital at Knossos. In Greece, roads were usually one lane, although some were as much as 11.5 feet wide. Bridges and culverts kept them passable. After that at that at that time mainly three groups used to travel. They were military, government officials and caravans.

326 B.C.E.:- alexander the great found well developed roads in India.

Between 500 and 400 B.C.E.:- in Persia (nowIran) all the cities and province were connected to the capital, Susa. This road was 1500, miles long.

98 to 117C.e:- by the time of Emperor Trajan, the roman roads comprised a network of some 50000 miles. They griddled the Roman Empireextending from near Scotland and Germany in the north to the south well within Egypt and along the southern shores of Mediterranean sea to the east, roads extended to the Persian gulf in what is now Iraq and Kuwait. Now the romans could travel as much as 100 miles a day using relays of horses furnished from rest post 5 to 6 miles apart. Particularly the pyramid s and monuments of Egypt.

Between 160 and 180c.e.( during the reigns of emperors Hadrian, Hadrian, Antonius pius and Marcus Aurelius’ :- the only guide book to survive from ancient times is a guide book ofGreece, written by a Greek named Pausanias.

             At that time romans were most civilized group so they used to travel various places for various places for reasons where travelling and tourism is always linked with the civilization, the fast civilization grows the tourism also expand in same way.

                        According to the different tourism related expert has categorized the history of development of tourism into 6 periods or eras.

1.      The empire era (B.C.E. to 5^th century):

Near 4000 B.C.E.:- invention of money by the Sumerians (Babylonians) which helped a lot to flourish tourism. It made easy to travel by paying.

           2050 B.C.E.:- invention of road by king ofur.             

                        In this era there were no concept of tourism but people used to travel various places using animals as a vehicle because the roads. Were constructed for the monument of animals and the introduction of money was also happened in same era which motivated people to trace. At that time there was affluent population with time and money to travel. There were widely accepted currencies and widely used languages, the legal system were strong so many people traveled in this era.

2.      The middle age era (5^th to 14^th century)

500 to 1400 C.E/A.D. :- during Europe’s middle ages, a royal party in unfamiliar territory sends out a harbinger to scout the best route, find accommodation and food, then return to the group as guide.

13^th century: Marco polo’s historic travel took place.

                                    In this era the transportation and safety declined, less acceptance of currencies and less knowledge of common languages. In this era some traveled by crusaders to holy land.

3.      Renaissance era (14^th to 16^th century): in this era re invention and re travelling trend started. People increased interested in travel for commerce and pleasure

4.      Grand tour era:- (1613 to 1785 ad.) 1744 ad:- the concept of modern hotel started in London.in this era people who are rich and of high standard used to travelling. The trend of luxurious travel started by wealthy English, developed as status symbol and spread throughout Europe, goal was to experience the “civilized word.” And study the arts and sciences. These travels often lasted for several years. In this the industrial evolution began to start.

5.      The mobility era (1800-1944)

1830 A.D:- first rail link betweenLiverpool and Manchester was started

1841 A.D:- introduction of package tour by Thomas cook by travelling in tail with 570 passengers. The first tourism business was introduced by Thomas cook.

1845 A.D:- world’s first travel agency opened.

1849 A.D.:- in modern tourism first guide book was published as ‘john Murrayshandbook’ for London.

1879 A.D.:-Thomas cook introduced hotel coupon (pay here get there).

1891 A.D.; - American express, henry wells introduced travellers cheque

Near 1900:- 1^st motor car

·        Auto bahn (four lane road system) constructed

·        Later highways under construction

1903; - wright brothers introduced airplane

1918:- deutsche Lufthansa provided the first scheduled air passenger’s service from berlin to leipgig and Weimar.

1936; - AIR TRANSPORT ASSOCIATION (ATA) was formed in Chicago

1939:- first Tran Atlantic flight

This was one of the important periods where tourism got to flourish in rapid way due to of Thomas cook, introduction of auto bans, airlines and evolutions in industry.

6.      The modern era (1945 to till now)

1946:- first airlines in Europe (British airways)

1970; - first jet airlines Boeing 747 “jumbo jet” took 352 passenger

1964:- American airlines in augurates the SABRE computerized reservation system (CRS) were introduced.

2001:- Dennis tito took the world’s first paid space vacation

In this era there become various developments in technology and system which made tourism easier, reliable, safe secured etc. where people can travel without any problems. There are so many tourism m agencies over the world. This can’t be counted. By knowing this we can guess how the tourism market is flourishing over the world.

Nepal’s Tourism history/ development(नेपाल पर्यटन को इतिहास / विकास क्रम )

Ancient period/history

                  By seeing the history that the Manjushree is known as a first visitor ofNepal who came from Tibet. He cut an opening with his sword and drained the water of this Kathmandu valley and created a valley named “kantipur”. There are other history related Mahabharata. The first written history of Nepal has recorded the virth of Siddhartha gautam at lumbini, south of Nepal. Ashoka the great emperor visited lumbini. He had alliance with Nepal by marrying his daughter to aprince. She settled down the chabahi and built charumati bahal /stups. It is also popularly belived that ashoka erected the four stupas in the four cardina directions of patan.

The written history of Kathmandu valley, known as Nepal, starts from 400 A.D when manadeva of lichhivi dynasty worshipped at change and erected a stone pillar. The art and architecture of that time is the best in oceanographic term.

                                    The marriage of tsrong-tseng gampo(emperor of Tibet) and bhrikuti a nepali princess, who is worshipped as ‘green Tara’ opened the history of Tibet Nepal trade. After this marriage many Tibetan came to Nepal to see there’s queens. Country and also bhrikuti had influence them about Buddhism. Tibetian started to import- export thankas from Nepal. They started trade with newar communities ofKathmandu. Several prominent leaders, scholars and writers visited Nepal duting theis time and they’ve highlighted the hospitality and craftsmanship of nepali people.

                                    Malla rulers replaced the lichhavis and developed this valley as an open air- museum. This was the period when almost all fine art and architecture, the graceful pagodas, festivals and ceremonies were developed, which is still practiced. Malla king and of this valley were indebted with the responsibility of creating manmade attraction. The biggest assets of cultural tourism araniko, the greatest artist of that time visited Tibet and china and introduce was very famous in western world as Chinese (oriental) style. At people visited to see the art and architecture of Nepal. This was one of the unique art and architecture in world.

Shah and Rana period (शाह र राणा काल)

This was the period when rana were handling the country by keeping shah king down. After the kot massacre junga bahadur was entrusted as prime minister. Junga bahadur made sea voyage to visit queen of England and became the first Nepali to cross the ocean. Ranas closed Nepal for foreigners. British residency was there but their officials weren’t allowed to roam around freely.

1877A.D:- King George v and Prince of Wales were invited for shooting in the terai of Nepal.

                        There were no man peoples who visited Nepal because rana had totally closed Nepal for foreigners.

After democracy period/modern period

1951A.D. - democracy restoration after that Nepalopened door for foreigners.

1953 A.D.:- Mt. Everestsuccessful expedition by Edmund Hillary and tenging norgay Sherpa.

1950:- first hotel in Nepal Himalayan inn

1953:- Royal hotel established

1955:- Thomas cook and sons got special permission to organize a tour for 60 tourists withinKathmandu valley.

1956:- introduced visa system for first time

1957:- his majesty’s government of Nepalformed a tourism board and constituted tourism development committee

1977:- development of tourism ministry (MOCTCA)

1966:- establishment of NATA (Nepal association of travel Agents)

1967:- establishment of TAAN (trekking agent association of Nepal)

1999:- establishment of NTB (Nepal tourism Board) for the development of tourism in Nepal.

1963:- made an act for compulsory registration of travel agency

1964:- first four star hotels “Shankar hotel” by ramshankhar shrestha

1964:-first four star hotels “Shankar hotel” “hotel Del Annapurna” came up as a first five star hotel

1998:- declared as a “visitNepal year” with mission of 5 lakhs tourist this was the first effective way to introduce Nepal as a tourism destination in international.

            After Maoist started people’s war in 1996 the country for the social, economic development of Nepali people which brought threats to the tourist and the number of tourist started decline. The plan and policies was likely stopped for tourism in this period.

After restoration of democracy 19 days general strike of Nepali people. Tourism is regenerate for the tourism management and penetration.

            “Nepal tourism year 2011” introduced with mission of one million tourist capacity building in the country. However the

The concept of village tourism, community tourism home stay is presented by different tourism specialist.

2010:- Nepal was listed in one of the travelling destination over the world. It was listed in 6^thdestination for travelling.

            Bryan Adams (a popular rock star of 90’s) gave a concert inKathmandu, Nepal which also helped Nepal to recognize as a best destination for entertainment activities.

Thanks,

Prepared By : Suzan Shrestha

Source: nomercydaniel.blogspot.com

BBA, 4th sem, Question collection , 2014

                                            Sub: Quantitative Techniques 

Sub:Business Law

Sub: Human Resource Management 

Sub: Taxation & Auditing 

Sub: Financial management

Meaning and sources of public/government revenue

Government revenue in one of the major component of public finance. It refers to the income or receipt of the government. Government collects revenue from various sources because it has to spend on various sectors of the economy to stimulate the economic development.

Generally tax revenue & non-tax revenue are considered as important sources of government revenue. But in a broader sense, government also receive revenue from foreign aid.

1)Tax revenue: 
Tax is a most important sources of government revenue. It is a compulsory payment to the government. The share of tax revenue in Nepal is 86.5% in total revenue in a fiscal year 2010/11. The tax revenue include the following sources,

i)Custom: 
Export tax, import tax and exercise duty are the major components of custom. It is major sources of government revenue in Nepal.

ii)Tax on consumption & production of goods & services:
 the tax imposed on consumption & production of goods and services includes the income collected from sales tax, value added tax, entertainment tax, hotel tax, road tax etc.

iii) Land revenue and registration tax: 
 Land revenue and house registration charges are the also the sources of government revenue. These are kind of direct tax.

iv) Tax on property, profit and income:
 it includes the tax from public enterprises, private corporate, boarding tax, individual income tax, profit tax, property tax etc.

2) Non-tax revenue:
 The share of non-tax revenue in Nepal is 13.5 percent in total revenue in the fiscal year 2010/11. It includes the following sources of government revenue,

i)Charges, fees, fines and forfeiture: 
Forms and registration charges, vehicles license, administration, fines and forfeitures are includes under this heading.

ii)Receipt from the sales of commodities and subsidies:
 It includes the income from drinking water, irrigation, electricity, postal service, transport, communication etc.

iii) Dividend:
 It includes the dividend of government earned from financial institution, trading concerns, industrial undertaking, service sector etc.

iv) Royalty and sales of Assets:
 It includes the royalty from mining, as well as other sources. It also includes the income from the sales of government land, building and etc.

e) Miscellaneous items: 
The income receipt from miscellaneous items such as escheats (government claim on the property of dead person having no any legal heir) is included under this heading.

3) Foreign Grants:
Foreign grants is also an important sources of government revenue of Nepal. The amount received by the government from neighbor nation and international institution, world bank etc, in the form of bilateral and multilateral aids are called foreign grants. Grants have not to be repaid by government.

Meaning and sources of public/government revenue

Government revenue in one of the major component of public finance. It refers to the income or receipt of the government. Government collects revenue from various sources because it has to spend on various sectors of the economy to stimulate the economic development.

Generally tax revenue & non-tax revenue are considered as important sources of government revenue. But in a broader sense, government also receive revenue from foreign aid.

1)Tax revenue: 
Tax is a most important sources of government revenue. It is a compulsory payment to the government. The share of tax revenue in Nepal is 86.5% in total revenue in a fiscal year 2010/11. The tax revenue include the following sources,

i)Custom: 
Export tax, import tax and exercise duty are the major components of custom. It is major sources of government revenue in Nepal.

ii)Tax on consumption & production of goods & services:
 the tax imposed on consumption & production of goods and services includes the income collected from sales tax, value added tax, entertainment tax, hotel tax, road tax etc.

iii) Land revenue and registration tax: 
 Land revenue and house registration charges are the also the sources of government revenue. These are kind of direct tax.

iv) Tax on property, profit and income:
 it includes the tax from public enterprises, private corporate, boarding tax, individual income tax, profit tax, property tax etc.

2) Non-tax revenue:
 The share of non-tax revenue in Nepal is 13.5 percent in total revenue in the fiscal year 2010/11. It includes the following sources of government revenue,

i)Charges, fees, fines and forfeiture: 
Forms and registration charges, vehicles license, administration, fines and forfeitures are includes under this heading.

ii)Receipt from the sales of commodities and subsidies:
 It includes the income from drinking water, irrigation, electricity, postal service, transport, communication etc.

iii) Dividend:
 It includes the dividend of government earned from financial institution, trading concerns, industrial undertaking, service sector etc.

iv) Royalty and sales of Assets:
 It includes the royalty from mining, as well as other sources. It also includes the income from the sales of government land, building and etc.

e) Miscellaneous items: 
The income receipt from miscellaneous items such as escheats (government claim on the property of dead person having no any legal heir) is included under this heading.

3) Foreign Grants:
Foreign grants is also an important sources of government revenue of Nepal. The amount received by the government from neighbor nation and international institution, world bank etc, in the form of bilateral and multilateral aids are called foreign grants. Grants have not to be repaid by government.

Role/ Importance of public finance in developing country

Public finance is very important for the developing country. Some of them are as below,

a).Reduces the consumption of harmful goods
: The consumption of cigarette, alcohal,opium and other harmful commodities need to be discouraged. The government of a levy heavy taxes to discourage the consumption of these harmful commodities.

b) Protection of infant industries: 
If the infant and newly started firms or industry in developing nations are allowed to struggle with foreign firms specially from those which are technologically advanced country, they may not survive due to many reason and factors. These industries need protection and government often levies duties in order to protect them.

c) Provision of public goods: 
Government provides public goods that is the government finance and services such as road, military forces, street lights etc. The private citizens even the wealthy once, would not voluntarily pay for this services and therefore business have no incentive to produce them.

d) Side effects of a market economy: 
The public finance also enables government to correct or offset the undesirable side effects of a market economy. These side effects are called spillover or externalities. For example, industries may generate population and release it into the environment without considering the adverse effect on others people pollution is a spillover because it affects people who are not responsible for it. To correct spillover government can encourage or restrict certain activities. For example, government can sponsor recycling programs to encourage less pollution pass the laws that restrict the population or imposed charges or taxes on the activities that cause pollution.

e) Re-distribution of Income:
 Government redistribute income by collecting taxes from their wealthier citizens to provide resources for their needy once. The government levies higher taxes on the richer sections and spend the income on providing cheap food, cheap housing, free medical aid etc. for the poorer sections of the community. Hence, public finance plays a vital role in reducing the inequalities in the capitalist economy.

f) Subsidies and Grants:
 In modern times, subsidies and grants are inevitable for producing essential goods and services for the masses. The government provides subsidies and grants to different industries to increase the production of essential goods in the country. These subsidies and grants have special place in the government expenditure of underdeveloped and backward country.

g) Optimum utilization of resources:
The natural resources of developing country are underutilized. The poorer utilization of natural recourses is imperative, not only for present generation but also for the unborn generations. The state can direct the flow of production, consumption and distribution in the economy by framing suitable budgeting policies.

h) Steady Economic Growth: 
 The public finance is important to achieve sustainable high economic growth rate. The government uses the fiscal tools in order to bring increase in both aggregate demand and supply. The fiscal tools are taxes, public debt, and public expenditure. The principles of public finance help government to achieve balance development in the economy.

Scope/subject matters of public finance:

There are different subject matters of public finance, which are as follow,
1.Public revenue:
Government revenue is one of the major component of public finance. It refers to the income or receipt of the government under this branch, we study the varies sources of public revenue along with the principles of public revenue. Here we also study how the government collect the revenue and what method government uses to collect the revenue.

2.Public Debt: 
The government of a nation may take loan for various purposes from internal sources as well as external sources. Here we study the various sources of borrowing as well as the methods of public debt management. Here we also study the burden and incident of public debt as well as the various methods or redemption of public debt.

3.Public Expenditure:
 Public expenditure is another important branch of public finance. It refers to the expenditure by the government in different sectors of economy. Here we study the various principles of public expenditures along with the effects of the public expenditure on different sectors of economy.

4.Financial Administration:
It refers to the management and administration of various fiscal instruments of the government to induce study economic growth in the country. Here we study how the financial mechanism is organize and administered by the government.

Concept of public finance

The government of every country has to perform certain specific functions, which can be classified as obligatory functions and optional functions. Depends of the country. The maintenance of peace and security are some example of the obligatory functions of the government. But the provision of education, establishment of hospital building, a park etc. are optional functions of government. To perform all these functions adequately and efficiently, government needs funds. Public finance is that science which deals with the income and expenditure of government.

According to Findlay shirras,”Public finance is the study of the principles, understanding the spending and raising of funds of the public authorities.”

According to Daltan,”Public finance is one of those subject which lie on the borderline between economics and politics. It is concerned with the income and expenditure of public authorities and with the adjustment of one to the others.”

Public finance is both science as well as art. When we study the principles and policies of the government revenue and expenditure that might be the science of public finance but when we study how those principles should be applied to solve the financial problem of the government, public finance becomes an art.