DIFFERENCE BETWEEN PUBLIC AND PRIVATE EXPENDITURE //B.A.//M.A.//11TH CLASS//12TH CLASS

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Dissimilarity Between Public and Private Expenditure :
Public and private expenditure differ on various counts as follows-

i) The purpose of public expenditure is the welfare of the society or the country but the motive of private expenditure is limited to the welfare of himself and his family.

(ii) The individual always makes an attempt ‘to adjust his expenditure according his income whereas the government attempts first to make an estimate of total expenditure and then devise methods of raising the required revenue through various means.

(iii) The plans of private expenditure are generally short termed and are made only for the near future. Public expenditure on the other hand. is planned with the objective of long term benefits to the society.

(iv) The benefit of private expenditure can be measured with the help of the marginal utility of goods and services purchased. The benefits accrued to a private firm can also be measured in terms of equality between marginal cost and marginal revenue. But the measurement of benefits, accruing from the public expenditure is not possible.

(v) Flexibility in public expenditure is much more the the private expenditure because the latter cannot be squeezed later on whereas the private expenditure can be increased or decreased according to the will of the individual.


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