This edition of this text on public finances reflects significant changes in theory and practice. Notably, consumption has become a prominent factor in defining personal taxation, and tax theory now emphasizes deadweight loss, growth effects, and less concern for tax distribution. Fiscal federalism and public choice theories have evolved, considering federal roles and political decision-making. Macroeconomic upheavals led to a reevaluation of fiscal stabilization, and international dimensions garnered increased attention. Fiscal institutions adapted to changing needs, with a focus on limiting public sector growth. This edition has been updated to incorporate these developments while maintaining the close interaction between institutional and theoretical aspects. The authors emphasize the constructive role of the public sector in a democratic society and hope this edition contributes to efficient public sector management. Acknowledgments are made to colleagues and contributors for their valuable insights during the development of the text.