The below mentioned article provides an overview on Different Types of Expenditure. Revenue Expenditure and Capital Expenditure: Expenditures of the Union Government before 1987-88 were classified under two heads—on revenue account and on capital account. Expenditures on revenue account were mainly of three types- administrative expenses (for instance, general services, social services and economic services), defence expenditure and grants-in-aid to [...]
In this article we will discuss about the Causes of Rise in Government Expenditure. From the economic point of view, Government expenditure can be classified into consumption expenditure and investment expenditure. This is shown in the following table. What is clear from this table is the growing importance of gross capital formation in absolute terms. In percentage terms, it [...]
Let us make an in-depth study of the subject matter, categories and principles of public/government expenditure. Government Expenditure Subject Matter: In order to carry on their functions, governments must obtain the services of labour and other factor units and (except in a completely socialist economy) acquire goods produced by private business firms. Public expenditure consists of expenditure by the central [...]