Public Expenditures

PUBLIC-

Supported by money from the

government and from the

contributors

rather than

commercial.

EXPENDITURES

- An amount

of money spent

on somethi

ng

•The expenditures of the government are reflected in the national budget which shows the specific programs and projects of the government in one year.

Such expenditures

indicate the emphasis and

direction of the national economy as

well as its needs and problems.

In short, public expenditures mirror the major goals of the government

The National Government expenditures are allocated among the various sectors

such asEconomic

Services

Social service

sDefens

eGeneral Public

Administration

Debt Servic

e

Developing countries, which believe that their peoples constitute the real key to their progress provide the biggest budget for education.

To them, investment in human resources is the best investment. They give top priority to the training and education of their people. A kind of human resources development which is relevant to the needs of their economy and society.

In our case, it has been alleged that we have a colonial education which only benefits the business interests of the Americans.

Public Expenditures have been increasing tremendously as shown in our yearly national budgets. There are causes for such leap in our public expenditures such as inflation, growth of population, increase in the price of oil, and the massive infrastructure projects of the government.

We are a nation of 65 million people. This alone requires huge expenditures on social services like education, health, housing and other social services. Our peace and order problems also need big budget.

EVALUATING PUBLIC EXPENDITURES

To evaluate the efficiency of government programs or projects, we have to

compare their respective benefits and costs. If their benefits are greater than

their costs, such programs or projects are

efficient.

For example, the cost of an irrigation project is P500 million. If it has generated an income of P2 billion for the government in the form of irrigation fees, then it is a very good project. But this is not only the economic benefit but the farmers have also been able to increase their harvests. Evidently, the multiplier effects of farmers’ income from the irrigation have been substantial and extensive.

However, economic profitability is not only the basis of judging whether a project is good or not.In the less developed countries, government programs and projects should be evaluated more on their social impact of the people.If such projects or programs have touched the miserable lives of the masses, then these are excellent programs or projects.

Social justice should be the first priority in estimating the

benefits of government

expenditures.Programs which are highly profitable but benefit only very few

are not appropriate in a country where most

people are poor.A government should provide more funds to programs and projects which are principally

designed to improve the social and economic

conditions of the poor masses.

Because the people are the real foundations of economic, social and political stability.