Meaning:

Public expenditure refers to the spending by governments on various goods, services, and programs to fulfill their responsibilities and meet the needs of society. It encompasses the allocation of funds for public services, infrastructure development, social welfare programs, defense, education, healthcare, law enforcement, and other government functions. Types of public expenditure depends on the nature of the govt.

Public expenditure is a crucial component of fiscal policy and plays a significant role in shaping economic activity and societal well-being. Public expenditure is expenditure which is incurred by the government for its own maintenance and for prevailing the economic and social welfare of the people.

Modern governments have to perform complex functions due to the increase urbanization and industrialized. According to Adolf Wagener a German economist the government activities whether economic or non economic starts increasing this result in an increase in the government expenditure.

TYPES OF PUBLIC EXPENDITURE:

Direct expenditure and transfer expenditure:  When the government incurs expenditure on the purchase of goods and services and on current services of factors of production such expenditure is called direct expenditure. it is also known as exhaustive or non transfer expenditure some example of such expenditures are expenditure on defense, civil service, education service etc.

When the government makes payment which are made without a corresponding return of any factor services such expenditure is called transfer expenditure. some example of transfer expenditure are expenditure made on payments of interest on government debt, old age pensions, sickness benefit etc such expenditure do not add anything to the current production.

Development and non development expenditure: When the government incurs expenditure on the social and economic development of the country it is termed as development expenditure. It includes services such as education, public health, transport communication etc.

 Non development expenditure is the expenditure which is incurred on non development activities of the government such as on administrative service like police, defense, administration of justice etc.

Productive and nonproductive expenditure: Productive expenditures are incurred the productive capacity of the economy and are in the nature of investment like machinery, factories or investment on human capital.

Un productive expenditure do not add to the productive capacity of the economy and in the nature of consumption like expenditure on defense, justice, maintenance of law and order, these expenditure may indirectly improve the efficiency of the economy.

Capital and revenue expenditure: Capital expenditure is incurred once and is of non recurring in nature such as expenditure on selling a factories or buying the plant and machinery etc.

 Revenue expenditure is of a recurring in nature such as expenditure on administration and maintenance of law and order.

Discretionary and Non-Discretionary Expenditure: These are expenditures that governments have discretion over and can adjust based on policy priorities and budgetary constraints. Examples include spending on infrastructure, education, healthcare, defense, and social programs.

Conclusion:

Public expenditure is also known as mandatory spending, this includes expenditures that are required by law or contractual obligations and cannot be easily adjusted. Examples include interest payments on debt, entitlement programs like Social Security and Medicare, and other legally mandatory expenses.

also read: explain the factors for economic growth.