Bsc agri 2 pae u-4.3 public expenditure

Bsc agri 2 pae u-4.3 public expenditure

• 1.
  Public Expenditure BSC AGRI2 PAE UNIT 4
• 2.
  Increasing trend ofpublic expenditure • - To protect society from violence and invasion • -to protect every member of society from the injustice or oppression of every other member. • - to create and maintain certain public works and certain public institutions which can never be in the interest of any person or group of persons.
• 3.
  Causes of publicexpenditure growth • The rising trend of public expenditure in modern times may attributed to a multitude of causes. • -Income elasticity and increase in Per Capita Income according to Musgrave. • -Welfare State Ideology and Wagner’s Law. • -Effects of war and need for defence • -Resource Mobilization and ability to finance • -Inflation • -The role of democracy and socialism • -The Urbanization effect • -The Rural development Effect • -The Population Effect • -The Planning Effect
• 4.
  Canons of Publicexpenditure • The fundamental rules or principles governing the spending policy of the government • - Canon of benefit • -Canon of economy • -Canon of sanction, This suggests that no public spending should be b made without the approval of proper authority • -Canon of surplus
• 5.
  Effects of publicexpenditure • -Effect on consumption • -Effect on production • -Following Dalton, we may specify the three inter- related effects of public expenditure on production, as under: • -Efficiency effect, • -Incentive effect, • - Allocative effect • -Effect of public expenditure on distribution
• 6.
  SOURCE • www.up.edu.ps/ocw/upinar/moodledata/248 /Public_Expenditure.ppt