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Public Expenditure

Public expenditure refers to the expenditure which a government incurs for 1. Its own maintenance 2. The society and the economy 3. Helping other countries. Classification of Public Expenditure: · Productive and Unproductive expenditure: Productive expenditure promotes the production of country and national income. For example, expenditure on agriculture, industry, education, transport etc. Unproductive expenditure does not promote the production of country and national income. For example, expenditure on protection against aggression from external and natural disasters etc. · Central, Provincial and Local expenditure: Expenditure by central Government is treated as central expenditure; expenditure by provisional Government is treated as provincial expenditure and expenditure by local Government is treated as local expenditure, i.e., union parishad, pauroshava etc. · Maintenance and Development expenditure: Money spent on the maintenance of internal