PUBLIC EXPENDITURE AND ECONOMIC STABILISATION

The article discusses how market forces alone don't always lead to stable economic outcomes. In
developed economies, there can be fluctuations in income, employment, and prices. To address
this, economist Keynes suggested using government spending to balance economic ups and
downs. In times of economic downturn, the government can spend more money to boost demand
and help the economy. During periods of growth, the government can reduce spending to prevent
excessive inflation. However, this approach works best when the market can quickly adjust, and
there's enough unused capacity. In less developed countries, where markets are less flexible and
demand for basic goods is inelastic, using public spending to stabilize the economy is more
challenging. A thoughtful mix of strategies like export and import policies, subsidies, and taxes
is needed to achieve stability.

PUBLIC EXPENDITURE AND PRODUCTION

The article talks about how public spending can help the economy grow by increasing
production. In developed economies, it can boost demand and push production, but it can also
lead to inflation if not managed well. In underdeveloped countries, public spending can be used
to build essential things like infrastructure and skills, and help industries grow. However, there
are challenges like managing inflation and wasteful spending. The article emphasizes careful
planning and allocation of funds to stimulate private investment, reduce production costs, and
improve efficiency. It also mentions that public spending can help bridge regional disparities and
promote economic growth by supporting various industries and reducing shortages.

PUBLIC EXPENDITURE AND PRODUCTION

The article discusses how public spending can contribute to economic growth. In developed
countries, it can help stabilize the economy and encourage investment, leading to long-term
growth. In underdeveloped nations, public spending not only supports growth but also addresses
regional disparities and builds essential infrastructure like transportation, education, and
industries. However, public spending alone isn't enough – people's willingness to work, save, and
invest matters too. Public spending should be well-coordinated with other economic policies.
Additionally, the article highlights the need for an investment-friendly environment with
efficient processes and approvals to ensure the success of public expenditure efforts and boost
economic growth.

PUBLIC EXPENDITURE AND DISTRIBUTION

In an unregulated market, income and wealth inequalities increase over time, causing social and
economic problems. Smaller inequalities are better for economic stability. When incomes are
more equal, it helps prevent extreme booms and depressions. Fair distribution of income and
wealth is also good for the overall well-being of society. Policies like free education, healthcare,
and social security can help the less fortunate. Public spending can promote fairness by
providing necessary services and encouraging job growth. However, achieving equality can be
challenging because it might affect savings and investment. Balancing economic growth and
fairness is important, and how public spending is funded matters too. If done right, both goals
can be pursued together.