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"Most of the operations of public finance resolve themselves into a series of transfers of purchasing power"1 . Purchasing power is transferred from the people to the Government in the form of taxes, fees, fines and special assessments. The same purchasing power is re-transferred to the people when the government spends its income in various forms. How these transfers of purchasing power affect the entire economy is the subject matter of the positive science of public finance. However, public finance is not considered as a positive science because of its practical applications. It has its own normative aspects as well. Thus writers on public finance are inclined to set a series of norms for the transfers of purchasing power involved in the public finance operations. The paramount aim of the developing economies is economic development and everything else is subservient to this main aim.