Sie sind auf Seite 1von 6

-:PRESENTATION ON:-

Effects Of Public Expenditure On Economic Development And Stability


By Jignesh K. Sharma 10 B.Com. 38

-:Economic Stability:What Is Economic Stability ? Stable GDP Growth, Low Inflation And Unemployment.
Economic Stability Refers To An Economy That Experiences Constant Growth And Low Inflation. Advantages Of Having Economic Stability Include Having Increased Productivity, Improved Efficiencies And Low Unemployment. An Unstable Economy Causes A Decline In Consumer Confidence, Stunted Economic Growth And Reduced International Investments.

-: Economic Growth/ Development:What Is Economic Growth/Development ? Economic Growth Is A Term Generally Measured By The
Amount Of Production In A Country Or Region Over A Certain Period Of Time. In Addition To Production, Measured Through The Gross Domestic Product, Or GDP, Local Governments And Individuals May Use A Different Standard To Measure Economic Growth.

-: Effects Of Public Expenditure On Economic Stability : Increase In Public Expenditure Can Directly Increase Aggregate Effective Demand In The Economy. An Increase In Public Expenditure During Depression, Therefore, Leads To A Larger Increase In Output, Income And Employment Through The Multiplier Process. Public Works As Road, Canals, Dams, Parks, School, Hospitals And Other Buildings Etc. Expenditure On Public Works Creates Demand For The Products Of The Private Construction Industries, While Expenditure On Relief Measures Stimulates The Demand For The Products Of Consumption Goods Industries.

-: Effects Of Public Expenditure On Economic Development : Public Expenditure On The Establishment Of Heavy And Basic Industries Strengthens The Industrial Base Of The Economy And Increases The Growth Rate Of The Economy In The Long Run. Investment In The Heavy And Basic Industries Increases Incomes Immediately But It Increase Production In The Long Run. Hence A Imbalance Created Between The Demand And Supply Of Consumption Goods In The Economy. To Remove This Imbalance, A Large Increase In Public Expenditure Is Necessary To Promote The Development Of Agriculture And Consumption Goods Industries. Public Expenditure On Economic And Social O/H Such As Transport And Communication Facilitates The Process Of Economic Development. To Weaken The Private Monopolies As Also To Bring The Commanding Heights Of The Economy Under State Control, The Government Establishing Business Enterprises In The Public Sector. Public Expenditure Helps Private Enterprises Grow Rapidly By Establishing Specialized Financial Institutions Providing Long Term, And Medium Term Loans At Low Rate Of Interest.

Das könnte Ihnen auch gefallen