Question

Which of the following canon of 1 point
public expenditure is very
difficult to implement in
developing countries?
O Canon of elasticity
O
Canon of sanction
O Canon of surplus
O
Canon of productivity​

Answer 1

Answer:

A major canon of public expenditure is the canon of maximum social benefit. It implies that public expenditure should be incurred carefully and economically. Economy here means avoidance of extravagance and wastages in public spending. Public expenditure must be productive and efficient.

Answer 2

Answer:

The Canon of surplus is the canon of public expenditure which is very difficult to implement in developing countries.

Explanation:

• A surplus of income over expenditures should always be the goal of the government.
• According to Shirras, "public officials must earn a living and forge their path like regular residents."
• Government must be fiscally responsible.
• It shouldn't consistently overpay and end up with ongoing deficits.
• If at all possible, government spending should be kept below its revenue.
• When there is an unavoidable deficit, the surplus so generated can be exploited.
• Either limiting government spending or raising existing revenue can result in a surplus.
• However, the fiscal policy has recently undergone some revision.
• It is commonly acknowledged that deficit financing is essential to battling depression, achieving price stability, and fostering economic growth.
• Therefore, whether to choose a surplus or deficit budget depends on the strength of the argument.
• However, this canon serves as a crucial reminder that the government shouldn't overspend and rack up massive debt.
• Additionally, it makes it quite obvious that deficit spending should be avoided at all costs.

Hence, the canon of surplus public expenditure is very difficult to implement in developing countries.

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