What is Public Expenditure? Explain principles of public expenditure | Public Finance Economics

What is Public Expenditure?

Public expenditures refer to the government's spending on various programs, projects, and services that benefit the citizens of a country. The principles of public expenditures outline the key values and guidelines that governments should follow when allocating and spending public resources. 

_

_

These principles include:

1. Efficiency: Public expenditures should be efficient and cost-effective. This means that the government should use resources in a way that maximizes the benefits to society while minimizing the costs.
2. Equity: Public expenditures should be distributed fairly and equitably across the population. This means that the government should prioritize spending on programs and services that benefit those who are most in need, such as low-income households or marginalized communities.
3. Effectiveness: Public expenditures should be effective in achieving their intended goals and objectives. This means that the government should invest in programs and services that have been proven to be effective in delivering the desired outcomes.
4. Accountability: Public expenditures should be transparent and accountable. This means that the government should be open and transparent about its spending decisions and ensure that public resources are used in accordance with the law and public interest.
5. Sustainability: Public expenditures should be sustainable and long-term oriented. This means that the government should invest in programs and services that contribute to the long-term growth and development of the economy and society.

By following these principles, governments can ensure that public resources are used in a way that maximizes their benefits to society while also promoting fairness, transparency, and accountability in the use of public funds.