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 [...]
This article throws light upon the eight main canons of public expenditure. The canons are: 1. Canon of Benefit 2. Canon of Economy 3. Canon of Sanction 4. Canon of Surplus 5. Canon of Elasticity 6. Canon of Neutrality 7. Canon of Productivity 8. Canon of Equitable Distribution. 1. Canon of Benefit: According to Prof. Findlay Shirras public expenditure should [...]