What is Public Expenditure?
Public expenditure is the expenditure incurred by the government (Central, State, and Local) either for protecting the citizens or for satisfying the collective needs of the society. The main objective of public expenditure is to promote and maximise social welfare. In the nineteenth century, public expenditure was considered a wasteful expense, but in the present century, this expenditure is important for promoting social welfare and for making society better as a whole. Various productive activities, such as Education, health, etc., are being carried on by the government with this expense.
Table of Content
- Canons (Principles) of Public Expenditure
- 1. Canon of Maximum Social Benefit
- 2. Canon of Cost-Benefit Analysis
- 3. Canon of Economy
- 4. Canon of Sanction
- 5. Canon of Elasticity
- 6. Canon of Productivity
- 7. Canon of Balanced Income and Expenditure
- 8. Canon of Equitable Distribution