what are the golsof public expenditure
Answers
Explanation:
Public expenditure. Public expenditure is spending made by the government of a country on collective needs and wants such as pension, provision, infrastructure, etc. Until the 19th century, public expenditurewas limited as laissez faire philosophies believed that money left in private hands could bring better returns
The public sector, which involves government spending, revenue raising, and borrowing, has a crucial role to play in any mixed economy.
The purpose of government expenditure
Government spends money for a variety of reasons, including:
To supply goods and services that the private sector would fail to do, such as public goods, including defence, roads and bridges; merit goods, such as hospitals and schools; and welfare payments and benefits, including unemployment and disability benefit.
To achieve supply-side improvements in the macro-economy, such as spending on education and training to improve labour productivity.
To reduce the negative effects of externalities, such as pollution controls.
To subsidise industries which may need financial support, and which is not available from the private sector. For example, transport infrastructure projects are unlikely to attract private finance, unless the public sector provides some of the high-risk finance, as in the case of the UKs Private Finance Initiative – PFI. During 2009, the UK government provided huge subsidies to the UK banking sector to help deal with the financial crisis. Agriculture is also an industry which receives large government subsidies. See: CAP.
To help redistribute income and achieve more equity.
To inject extra spending into the macro-economy, to help achieve increases in aggregate demand and economic activity. Such a stimulus is part of discretionary fiscal policy.
Local government is extremely important in terms of the administration of spending. For example, spending on the NHS and on education are administered locally, though local authorities. Approximately 75% of all public spending is by central government, and 25% is by local government.
Please mark my answer as the brainiest if you feel this answer deserves it.
Please please please please please please please please please please.
Hope it helps you.