This book provides a lively and comprehensive introduction to the economics of the public sector. It examines the economic framework, public expenditure and finance, budgets and borrowing, industry and public investment, and management of the economy. Both theory and practice are covered as are all recent developments in relation to the European Community, privatisation, deregulation and local government finance. Written in a clear and concise manner, each chapter concludes with exercises and suggestions for further reading and is designed to facilitate self study.