PUBLIC EXPENDITURE

 DIFFERENT GOVERNMENTS SPEND DIFFERENT

AMOUNTS ON DIFFERENT THINGS.

 PUBLIC SPENDING PRIORITIES AND NEEDS

DIFFER.
Reasons for Government Spending's

To provide goods and services that are socially and economically desirable

including Public goods and Merit Goods.

To invest in social and economic infrastructure such as roads and railway

networks, schools, hospitals and other buildings to support growth and human

and economic development in their economies.

To support agriculture and other key industries by providing financial assistance

and subsidies to firms to reduce their costs of production and make investment in

staff training, new machinery and the research and development of new products,

processes and material.

To reduce inequalities in incomes and help vulnerable people

For example by providing income support and other welfare payments for people

and families in need or on low incomes. Financial payments that a government

provides to individuals , usually through a social welfare programme such as

disability allowance, old-age pension and unemployment compensation.

To manage the macro economy using public expenditures and taxes to

control total demand to achieve economic growth, reduce

unemployment and avoid high and unstable periods of price inflation.