GOVERNMENT/

PUBLIC
EXENDITURE

GOVERNMENT SPENDING AND

DEBT
 PUBLIC FINANCE

P.F is a branch of economics that deals

with the management of public funds,
government revenue (sources) and
expenditure (items), as well as their
impacts on different aspects of the
economy.
 PUBLIC EXPENDITURE AND DEBT
Public expenditure refers to the total expenses incurred by government
authorities at all administrative levels in the country.
Public debt refers to the debt a country owes its citizens (internal debt) or
other countries and international/foreign organizations like World Bank
(external debt).
• Finance deficit budgeting;
• Meet up with huge capital projects;
Governmen • Meet cost of national emergencies;
t borrow • Reduce economic burden on taxpayers for carrying out
funds in projects;
• Provide employment opportunities;
order to: • Service some older or more pressing loans;
• To control fluctuations in national income; etc.
Nigeria’s Debt State
 CLASSIFICATION OF GOVERNMENT
EXPENDITURE

Capital Expenditure: Recurrent

These are spent on Expenditure: These
projects which are are expenses that
permanent in nature are carried out on
or have a long-lasting repeated or regular
nature, such as basis, such as
building schools, salaries, allowances,
roads, bridges, bills, maintenance,
industries, etc. etc.
UNITED KINGDOM EXPENDITURE CHART
 Areas of Government Spending
General administration/maintenance (civil service,
government departments, political appointees,
embassies and ambassadors, defence, security
agencies, legislature, executive and judiciary)

Economic services (agriculture, trade/commerce,

industry, communication, power, forestry, etc)

Social services (infrastructural facilities like roads

and pipeborne water, education, healthcare,
market, recreational facilities, unemployment
benefits, environmental sanitation)

Transfer service (servicing public debts, granting of

loans to local authorities, payment of pensions,
grants and loans to friendly nations)
 Factors That Contributes To Increase in Public
Spending
Inflation in
Population Unemployment Poverty of
general price
growth of citizens citizens
level

Rise in defense Improving

Rise in
Financing cost and social economic
accumulated
democratic security growth and
national debt
institutions like payment development
political parties and
electoral bodies
Wars and other Rise in general
social administration
dislocations cost
 ASSIGNMENT

Home-work: DISCUSS THE CLASSES OF PUBLIC DEBT WITH PRACTICAL EXAMPLES. (To be written in your note and
submitted upon onsite resumption)

Project: Prepare a detailed work on Government Budget. It must contain the following:
1. The description of budgets in various forms
2. The types of budgets
3. At least two solid examples for a national budget (Nigeria being one)
4. Use of government budget in achieving their macroeconomic objectives
5. A uniquely arranged work in either word or powerpoint.
You will be required to defend your work, so best you work independently.

Home-work is 20 marks by Monday, 6th March 2023

Project is 50 marks, expected latest Wednesday, 8th March 2023