Question

What is meant by Public Expenditure? How many types of public expenditure are possible?

Answer 1

Public expenditure can be classified onthe basis of benefits they confer ondifferent groups of people. Common benefits to all : Expenditures that confer common benefits on all thepeople. For example, expenditure on education, public health, transport, defence, law and order, general administration.

Answer 2

Public expenditure refers to a series of expenses incurred by the government or public authorities on account of providing salary, pension, infrastructure, subsidies and provisions to the people.

The types of public expenditures are as follows:

1. Capital expenditure

2. Revenue expenditure

3. Transfer and non-transfer expenditure

4. Productive and non-productive expenditure

5. Planned and unplanned expenditure

6. Other expenditures including civil, developmental and defence expenditures.