Consider the following statements :1. In the context of the classical model loan finance may be a means of transferring the burden to the future generation.2. Foreign borrowing permits financing public programmes without placing a burden on the present generation.3. Foreign borrowing is not burdensome to the future generations even if the funds are used unproductively. Of the above statements

Public finance is the study of the role of the government in the economy. It is the branch of economics that assesses the government revenue and government expenditure of the public authorities and the adjustment of one or the other to achieve desirable effects and avoid undesirable ones.