The prediction of economists regarding expenditure objectives and the mission of public expenditure is expanding gradually. The specialist believes that the good fare of the country lies in expending less and earning less. Historically, it is proved that the economic and social welfare increased by public expenditure.
Besides, there are some objectives of public expenditure are described below:
- Ensure Internal peace and discipline: The historical duty of the government is to ensure internal peace and discipline within the country. It is the major duty of government to ensure peace and discipline and security of the people .the security team and police are playing this role on behalf of the government. For this, the government needs to expense a lot of money to keep the security team and police for the people.
- Protect the country from an external enemy : Another objective is to protect the country from an external enemy. Every country builds a security team for its freedom and sovereignty. For this, the government expenses a lot in this sector.
- Official expenditure: The other objective of public expenditure is to operate official expenses. The government needs to appoint many employees to operate the official activities of the country. Besides, the government needs to pay a huge sum of salaries for these employees. For these objectives, the government needs to expense a lot.
- Economic development: The direct participation of government in economic development is another objective of government expenditure .it has been proved that the increase of income, production, and appointment is not possible only personal attempts. For these, the government needs to come forward. The participation of government is important along with private attempts for economic development, especially in developing countries.
- Economic stability: The objectives of public expenditure are to maintain economic stability. Government participation is important when a country faces inflation or deflation. Economic stability can come back under the market process. Thus, the government needs to increased expenses or reduce expenses.
- Social well-fare: Ensure social welfare is another objective of government expenditure. All countries in the world do welfare activities for the people in a society because people are the center of development. Besides, to ensure these social welfare activities, the government needs to expense a huge amount of money.
- Fair distribution of income and assets: The fair distribution of income and asset needs to ensure the welfare of modern society. The unequal distribution of income and assets can create discrimination between the poor and the rich. The government needs to take various steps to remove this discrimination. The government can collect money from asset tax, income tax from rich people, and distribution this among the poor.
- Control business cycle: The direct participation of the government can control the business cycle. The poor condition of the business cycle can reduce employment, income, and production. In this time, the government increased its expenditure and the crisis of the business cycle.
- Fare development: To ensure fair development in society is another objective of public expenditure. The local discrimination in various areas in a country can arise due to poor development facilities. The materials of production can inactive in some cases need to expense a lot for underdeveloped areas.
- Ensure social security: Another major objective of government expenditure is to ensure social security in society. The government of Developed or developing countries is an expense a lot of money for ensuring social security.
So, learners, hope you all easily understand the Objectives of public expenditure.