What is government expenditure management?
Public expenditure management (PEM) is an approach to public sector budgeting that is oriented towards achieving socially desired outcomes. And fi- nally, operational efficiency refers to the provision of public services at a reasonable quality and cost.
What is government spending called?
Government spending or government expenditure can be divided into three primary groups, government consumption, transfer payments, and interest payments. Government consumption are government purchases of goods and services.
What is theory of public expenditure?
It was introduced by Swedish Economist “Erik Lindahl in 1919”. According to his theory, determination of public expenditure and taxation will happen on the basis of public preferences which they will reveal themselves. The tax that they will pay will be revealed by them according to their capacities.
What is the expenditure incurred by the government?
Total Expenditure incurred by Government of India is Rs 22,80,147 crore (75% of corresponding BE 2020-21), out of which Rs 19,71,173 crore is on Revenue Account and Rs 3,08,974 crore is on Capital Account.
What is meant by public budging?
Public budgeting is a field of public administration and a discipline in the academic study thereof. The economist views budgeting as a matter of allocating resources in terms of opportunity cost where allocating resources to one consumer takes resources away from another consumer.
How can government reduce its expenditure?
Measures to Reduce Government Deficit Increased emphasis on tax-based revenues and appropriate measures to reduce tax evasion. Reduction in subsidies by the government will also help reduce the deficit. Try and avoid unplanned expenditures. Borrowing from domestic sources.
What is classification of government expenditure?
Public expenditure is functionally classified into four (4) categories in Nigeria: administration, economic services, social and community services, and transfers with capital and recurrent expenditure consumptions for each class (CBN, 2011).
What is it called when the government spends more money than it brings in?
Fiscal deficits are negative balances that arise whenever a government spends more money than it brings in during the fiscal year. This imbalance—sometimes called the current accounts deficit or the budget deficit—is common among contemporary governments all over the world.
What is Bowen’s model in government public expenditure?
Bowen’s model has more operational significance, since it demonstrates that when social goods are produced under conditions of increasing costs, the opportunity cost of private goods is foregone. The supply curve is shown by a’+b’, indicating that goods are produced under conditions of increasing cost.
Which economist gives public expenditure theory?
In 1954 Paul Samuelson published his landmark paper The Pure Theory of Public Expenditure, which formalized the concept of public goods (which he called “collective consumption goods”) — i.e. goods that are non-rival and non-excludable.
Who is the controlling authority of government expenditure?
The Finance Ministry
The correct answer is The Finance Ministry. The controlling authority of government expenditure is the Finance Ministry.
What is development expenditure?
Developmental expenditure refers to the expenditure of the government which helps in economic development by increasing production and real income of the country. Developmental expenditure on revenue is divided into developmental expenditure on revenue account and developmental expenditure on capital account.