Question 3. What is public expenditure?
Answer 3. Public expenditure is spending made by government of a country on collective needs and wants such as pension , provision, infrastructure etc. Throughout the 19th century , most government followed laissez faire economic policies and their function were only restricted to defending aggression and maintaining law and order. In developing countries , public expenditure policy not only accelerates economics growth and promotes employment opportunities but also plays a useful role in reducing poverty and inequalities in income distribution.
Question 4. Define public expenditure with definition.
Answer 4. " Public expenditure refers to the expenditure incurred by the central state or local government of a country for its own administration , social welfare , economics development and for providing help to other countries. "
Question 5. Define nature of public expenditure.
Answer 5. The nature of public expenditure differs from country to country as per the needs and requirements of the country. In developing country , like india , government has a unique role to play with a vision of socio-economic makeover and attainment of higher rate of growth with social justice. Public expenditure in developed countries is basically undertaken to check the fluctuations in effective demand. In developing countries public expenditure has the objective of socio- economic transformation and positioning a leading big emerging economy in the global setting in a developed country status.
Question 6. Name the all principles of public expenditure.
Answer 6. There are several principles suggesting maximization of gains of public expenditure.these principle are called canons of public expenditure.
1. Canon of benefit
2. Canon of economy
3. Canon of sanction
4. Canon of surplus
5. Canon of elasticity
6. Canon of productivity
7. Canon of equitable distribution
8. Canon of certainty
9. Canon of co-ordination
10. Miscellaneous.