The Public Expenditure of Tamil Nadu in Post-Reform

Abstract

Public expenditure is an essential instrument of the fiscal system of a federal nation. The size and the pattern of public spending have great relevance in the growth process and the reduction of economic disparities.

In the 20th century, John Maynard Keynes advocated public expenditure's role in determining the level of income and its distribution. In developing countries, public expenditure policy accelerates economic growth, promotes employment opportunities, and plays a valuable role in reducing poverty and inequalities in income distribution.

In modern days, public expenditure has increased continuously in most countries because of the continuous expansion of state activities.