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Government Expenditures

In fiscal policy topic, I have explained how can government expenditure policy be useful to reduce deficit? In government expenditure topic, I will tell you what are main government spending or expenditures?
Government spending or expenditures are those expenses which are paid for salaries to government employees, pensions to retired government employees, building of railways, roadways, electricity, bridge, hospitals, schools, education, health care, defense, welfare of poor etc.

In USA, the summary of main government spending is given below (Ref. has been taken from Wikipedia).


Amount                    
(billion)


Pensions $747.1

Health Care $783.8

Education $900.8

Defense $622.2

Welfare $411.4

Interest $312.3



Government Expenditures in India

In India, government expenditures are determined under five year plans and government union budget. Indian government expenditure are divided into three parts

In part one = expenditures of ministries are included


In part second = non plan expenditures are included


In third part = plan expenditure are included

In first year plan(1951- 1956) only Rs. 1960 crores were fixed for government expenditure but in 2010 union budget and 11th five year plan (2007 -2012), total government expenditures are fixed Rs. 11,08,749 crores. Detail is given below.( Ref. is taken from government budget 2010-2011)



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Accounting Education: Government Expenditures
Government Expenditures
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Accounting Education
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