BudgetingFinance

The Causes For Increase In Public Expenditure

Increase in public expenditure should be controlled in order to lower the public burden. The classical economists were of the view that the volume of public expenditure should be kept low.

The reasons responsible for the increase in Public Expenditure in recent years are:

  1. Expansion of State Activities
  2. Increase in Population
  3. Increased Expenditure on War
  4. Rise of Democracy
  5. Rise in price level
  6. Welfare States
  7. Economic Planning
  8. Growth of Public Sector
  9. Basic infrastructure
  10. And/or other activities

The discussion on these points are shifted to a new article for your clear understanding. 

The Reasons For Increase In Public Expenditure

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