A major canon of public expenditure is the canon of maximum social benefit. It implies that public expenditure should be incurred carefully and economically. Economy here means avoidance of extravagance and wastages in public spending. Public expenditure must be productive and efficient.
Which are in the principle of public expenditure?
1. Principle of Maximum Social Benefit: It is necessary that all public expenditure should satisfy one fundamental test, viz., that of Maximum Social Advantage. That is, the government should discover and maintain an optimum level of public expenditure by balancing social benefits and social costs.
What is canon of deficit?
This canon suggests that saving is a virtue even for the government, so an ideal budget is one which contains an element of surplus by keeping public expenditure below public revenue. In other words, it means that the government should avoid deficit budgeting in the interest of its own creditworthiness.
What is the principles of expenditure?
The main principles or canons of public expenditure are as follows: (i) The Principle of Maximum Social Advantage: The government expenditure should be incurred in such a way that it should give benefit to the community as a whole. The aim of the public expenditure is the provision of maximum social advantage.
What are the main objectives of public expenditure?
The objectives of public expenditure are the following:
- Provide social goods:
- Remove unemployment:
- Increase Production:
- Exploitation and Development of Mineral Resources:
- Promote Price Stability:
- Promote Balanced Growth:
- Reduce Inequality of Income:
What is canon of productivity?
Canon of Productivity: Bastable, taxes must be productive or cost-effective. This implies that the revenue yield from any tax must be a sizable one. Further, this canon states that only those taxes should be imposed that do not hamper productive effort of the community.
Is public expenditure is rising in India?
Public expenditure has grown rapidly since independence and there has been change in the pattern and composition of public expenditure. The data given above in the table reflects that the total expenditure has grown from Rs. 377.1 bn in 1983-84 to Rs. 336856 bn and to Rs.
What are the aims of public expenditure?
In the modern era, public expenditure has the following objectives: (a) provision of collective wants in order to optimise society’s consumption in a rational way and to maximise social and economic welfare. (b) Control of the depressionary tendency in the market economy.
What are the four canon of taxation?
In this sense, his canons of taxation are ‘classical’ in sense, four canons of taxation are: (i) Canon of equality or equity (ii) Canon of certainty (iii) Canon of economy (iv) Canon of convenience.
Who controls public expenditure in India?
In a parliamentary democracy, the political executive is responsible to the Parliament. The control exercised by the Parliament over the executive is its control on financial expenditure. This is exercised in two ways.
