Public Expenditure

In this chapter, we will discuss the following topics:
• Causes of increase in public expenditure
• Principles of public expenditure
o Principle of maximum social benefits
o Principle of economy
o Canon of sanction
o Principle of balanced budget
o Canon of elasticity
o Avoidance of unhealthy effects on production or distribution
• Effects of public expenditure
o Effects on production
o Effects on distribution
o Effects on level of income and employment
• Role of public expenditure in a developing country
o Social and economic overheads
o Balanced regional growth
o Development of agriculture and industry
o Exploitation and development of mineral resources
o Subsidies and grants to provinces, local governments and exporters
• Classification of government expenditure
o Current expenditure
o Capital expenditure
 Development expenditure
 Non-development expenditure

Study Notes for the subjects of Economics, Master of Arts, Karachi University. It is also helpful for the students of B.A., B.Com, BBA, MBA, B.Sc, M.Sc, ICAP, ICMA, PIPFA, Punjab University, private universities, etc.

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