B Com Exam > B Com Videos > Public Finance > Introduction - Public Expenditure, Public finance
Introduction - Public Expenditure, Public finance Video Lecture | Public Finance - B Com
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FAQs on Introduction - Public Expenditure, Public finance Video Lecture - Public Finance - B Com
| 1. What is public expenditure? |  |
Ans. Public expenditure refers to the government's spending on various goods and services to meet the needs of the public. It includes expenses on infrastructure development, education, healthcare, defense, welfare programs, and other public services. Public expenditure plays a crucial role in stimulating economic growth and improving the standard of living for citizens.
| 2. How is public expenditure financed? | |
Ans. Public expenditure is financed through various sources, including taxation, borrowing, and non-tax revenues. Taxation is the primary source of revenue for governments, where individuals and businesses pay taxes on their income, goods, and services. Governments also borrow money by issuing bonds or taking loans from domestic or international institutions. Additionally, non-tax revenues such as fees, fines, and profits from state-owned enterprises contribute to financing public expenditure.
| 3. What are the objectives of public expenditure? | |
Ans. The objectives of public expenditure are multifaceted. The primary goals include promoting economic growth, reducing poverty and inequality, ensuring social welfare, maintaining law and order, and providing public goods and services. Public expenditure also aims to stabilize the economy during economic downturns through fiscal policies like increased government spending and tax cuts.
| 4. Why is public expenditure important for economic development? | |
Ans. Public expenditure plays a crucial role in economic development as it helps in creating infrastructure, improving human capital through investments in education and healthcare, and fostering innovation and research. It stimulates aggregate demand, boosts economic activities, and creates employment opportunities. Additionally, public expenditure on social welfare programs helps in reducing poverty and inequality, leading to a more inclusive and sustainable economic growth.
| 5. What are the challenges in managing public expenditure? | |
Ans. Managing public expenditure poses several challenges. One major challenge is ensuring the efficiency and effectiveness of spending, as misallocation of resources can lead to waste and inefficiency. Another challenge is maintaining fiscal discipline and avoiding excessive borrowing, which can lead to budget deficits and debt burdens. Additionally, there is a need for transparency and accountability in public expenditure to prevent corruption and ensure the funds are used for their intended purposes.
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Dec 20, 2024 Last updated |
Video Description: Introduction - Public Expenditure, Public finance for B Com 2024 is part of Public Finance preparation.
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