This article throws light upon the sixteen main factors responsible for the growth of public expenditure. Some of the factors are: 1. The New Concept of Welfare State 2. War and National Defence 3. Population Growth 4. Growth of Democratic Institutions 5. Provision of Economic Over Head 6. The Problem of Urbanization 7. Rising Trend in Price Level 8. Adoption [...]
After reading this article you will learn about:- 1. Meaning and Scope of Public Expenditure 2. Classification of Public Expenditure 3. Effects. Meaning and Scope of Public Expenditure: Till the middle of the nineteenth century, the writers of Public Finance gave comparatively little attention to the subject of public expenditure. In earlier days, the growth of public expenditure was more [...]
This article throws light upon the top three theories for the analysis of public expenditure growth. The theories are: Theory # 1. Wagner's Hypothesis: Adolf Wagner a noted German political economist (1835-1917) propounded an empirical law to analyses and explains the trend in the growth of public expenditure. Wagner argued that a functional, cause and effect relationship exists between the [...]