First principles are the basis for any field, including public finance. They express a fundamental truth about public finance. They remain consistent despite technology and organizational characteristics of public finance that change over time. Understanding first principles is a necessary complement to knowing best practices. First principles provide the foundation for deviating from best practices when it becomes necessary. Public finance can’t advance unless best practices advance. Advancement can’t happen without change. Change can’t happen unless someone moves away from the then-current best practice. First principles provide the foundation for this evolution to occur, as everything we do in public finance should align with these first principles.
- Publication date: February 2025