The impact of changing Government Nature on Public Finance: an extension of Dualistic Balance Hypothesis

Different schools of thought have different approaches regarding the sphere of government activities. They assume different roles and duty to the government. Dualistic balance theory maintains that interaction of economic and political market shape the nature of government and justifies its performance. Rule of Law is considered as an important factor to bring about competitive governments. Each government has its own “Functional Peculiarities” in public finance, facilitating and or blocking the path of development.