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# Public Services Funding

## Definition

The financial mechanism by which governmental operations, infrastructure, defense, and other public goods are financed through the collection and allocation of state revenues. This represents the practical application of political economy's objective to supply the state with necessary resources.

## Source Chapter

Book IV, Chapter 0

## Context

Smith identifies the funding of public services as the ultimate purpose of state revenue generation, establishing the connection between economic systems and their capacity to support governmental functions and public welfare.

## Economic Domain

Regulation

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