Public Expenditure — Flashcards

Answer

Public expenditure means the expenses incurred by public authorities, that is, the Central Government, State Government, and Local bodies, to satisfy the common wants of people. It is not only a finan…

Answer

Public expenditure occupies in public finance the same importance that consumption occupies in economics. This means government spending is a central part of how a country manages its finances and pro…

Answer

The main objectives are: internal peace and discipline, defence from external enemies, official expenditure, economic development, economic stability, social welfare, and fair distribution of income a…

Answer

The government spends money on police and security arrangements to maintain peace, discipline, and public safety. This helps protect people and maintain order in society.

Answer

A country spends heavily on defence to protect itself from external enemies and to maintain freedom and sovereignty. Defence is a major objective of government spending.

Answer

Official expenditure is the spending needed to run government offices and public administration. It includes salaries and other costs for employees who carry out official work.

Answer

Public expenditure helps maintain stability during inflation or deflation. The government can increase or reduce spending according to economic conditions to support balance in the economy.

Answer

The government can collect taxes from richer sections and use the money for welfare measures that help poorer people. This reduces inequality and discrimination between the rich and the poor.