Saturday, 15 September 2007

Advantages of Public Expenditure

Advantages of Public Expenditure

The Public Expenditure is one of the important tool of fiscal .The Expenditure has the following advantages.
1. More Jobs in the Economy :- One of the reason for high public expenditure is to create more jobs in the economy. we know that high unemployment rate in the economy create a pressure for the govt , Therefore Govt like to have enough jobs in the country.
2. Boost for Industries ;- The development expenditure by  Govt will boost the relevant industries. for example announcement of big projects of infrastructure will boost the industry.
3. Raise the Demand :- The public expenditure will also raise for the Good and this raise in demand will attract new investment.

4. Growth Rate improve :- The raise in demand will attract new investment and this will increase the output in the economy.

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