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What is the main objective of public expenditure?
- a)To generate profits for the government.
- b)To maintain the government's budget surplus.
- c)To benefit society as a whole and support government activities.
- d)To promote private sector investments.
Correct answer is option 'C'. Can you explain this answer?
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What is the main objective of public expenditure?a)To generate profits...
Public expenditure is incurred by public authorities for the benefit of society as a whole and to support various government activities.
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What is the main objective of public expenditure?a)To generate profits...
The main objective of public expenditure is to benefit society as a whole and support government activities.
Public expenditure refers to the spending of public funds by the government on various goods, services, and infrastructure projects. The objective behind public expenditure is to improve the overall well-being of society by providing essential services, promoting economic development, and ensuring social welfare. Let's discuss this in detail:
1. Provision of Public Goods and Services:
One of the primary objectives of public expenditure is to provide essential goods and services that are necessary for the functioning of a society. These include infrastructure development (roads, bridges, schools, hospitals, etc.), defense, law and order, healthcare, education, and social security. These public goods and services benefit the entire society and contribute to its overall progress and well-being.
2. Redistribution of Income and Wealth:
Public expenditure is often used to address income and wealth disparities within a society. Through various welfare programs, the government aims to provide financial assistance, subsidies, and social security benefits to disadvantaged sections of the population, such as the poor, elderly, disabled, and marginalized groups. This helps in reducing poverty, promoting social justice, and creating a more equal society.
3. Economic Development:
Public expenditure plays a crucial role in promoting economic development. The government invests in infrastructure projects, such as transportation networks, power plants, and communication systems, which are essential for attracting private investments and facilitating economic activities. Additionally, public expenditure on research and development, education, and skill development programs helps in enhancing human capital and promoting innovation and productivity growth.
4. Stability and Macroeconomic Management:
Public expenditure is also used as a tool for macroeconomic management. During periods of economic downturns or recessions, the government may increase its spending to stimulate economic growth and create employment opportunities. Similarly, during inflationary periods, the government may reduce its expenditure to control inflation and maintain price stability.
5. Financing Government Activities:
Public expenditure is necessary to finance the functioning of the government itself. This includes the salaries of government employees, administrative expenses, defense expenditure, and debt servicing. Without adequate public expenditure, the government would not be able to carry out its essential functions and provide necessary public services.
In conclusion, the main objective of public expenditure is to benefit society as a whole and support government activities. It aims to provide public goods and services, promote economic development, address income and wealth disparities, ensure social welfare, and finance the functioning of the government. By fulfilling these objectives, public expenditure contributes to the overall well-being and progress of a society.
Public expenditure refers to the spending of public funds by the government on various goods, services, and infrastructure projects. The objective behind public expenditure is to improve the overall well-being of society by providing essential services, promoting economic development, and ensuring social welfare. Let's discuss this in detail:
1. Provision of Public Goods and Services:
One of the primary objectives of public expenditure is to provide essential goods and services that are necessary for the functioning of a society. These include infrastructure development (roads, bridges, schools, hospitals, etc.), defense, law and order, healthcare, education, and social security. These public goods and services benefit the entire society and contribute to its overall progress and well-being.
2. Redistribution of Income and Wealth:
Public expenditure is often used to address income and wealth disparities within a society. Through various welfare programs, the government aims to provide financial assistance, subsidies, and social security benefits to disadvantaged sections of the population, such as the poor, elderly, disabled, and marginalized groups. This helps in reducing poverty, promoting social justice, and creating a more equal society.
3. Economic Development:
Public expenditure plays a crucial role in promoting economic development. The government invests in infrastructure projects, such as transportation networks, power plants, and communication systems, which are essential for attracting private investments and facilitating economic activities. Additionally, public expenditure on research and development, education, and skill development programs helps in enhancing human capital and promoting innovation and productivity growth.
4. Stability and Macroeconomic Management:
Public expenditure is also used as a tool for macroeconomic management. During periods of economic downturns or recessions, the government may increase its spending to stimulate economic growth and create employment opportunities. Similarly, during inflationary periods, the government may reduce its expenditure to control inflation and maintain price stability.
5. Financing Government Activities:
Public expenditure is necessary to finance the functioning of the government itself. This includes the salaries of government employees, administrative expenses, defense expenditure, and debt servicing. Without adequate public expenditure, the government would not be able to carry out its essential functions and provide necessary public services.
In conclusion, the main objective of public expenditure is to benefit society as a whole and support government activities. It aims to provide public goods and services, promote economic development, address income and wealth disparities, ensure social welfare, and finance the functioning of the government. By fulfilling these objectives, public expenditure contributes to the overall well-being and progress of a society.
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What is the main objective of public expenditure?a)To generate profits for the government.b)To maintain the government's budget surplus.c)To benefit society as a whole and support government activities.d)To promote private sector investments.Correct answer is option 'C'. Can you explain this answer?
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