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VOL. 10, ISSUE 4 (2025)
Evolution of public expenditure in Punjab
Authors
Vinati
Abstract
The purpose of this study is to examine in detail the role of public expenditure in the development of the primary, secondary, and tertiary sectors in Punjab. Public expenditures refer to the spending carried out by the government, social security agencies, local governments, and organizations associated with them. In this analysis, public expenditure is categorized into two types: revenue account expenditure and capital account expenditure. Developmental expenditure encompasses funds allocated to economic, social, and community services, while non-developmental expenditure includes costs related to administrative support, defence, debt servicing, and subsidies. Revenue expenditures cover civil expenses such as general services, social and community services, economic services, and defence, whereas capital expenditures involve spending on defence, general services, social and community development, and economic development. Public expenditure has played a significant role in driving the overall growth of Punjab. Since public spending is a component of GDP, any increase in public expenditure directly contributes to GDP growth. Moreover, as income levels rise, consumption also increases, generating a positive feedback loop that reinforces economic growth, similar to the effects of changes in exports, investment, or autonomous consumption.
Pages:120-126
How to cite this article:
Vinati "Evolution of public expenditure in Punjab". International Journal of Advanced Research and Development, Vol 10, Issue 4, 2025, Pages 120-126

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