True or False
State with reason whether you agree or disagree with the following statement:
Democratic Governments do not lead to increase in public expenditure.
I disagree with the above statement.
- Public expenditure refers to the expenditure incurred by the public authority (i.e., Central, State, and Local Bodies) for the protection of their citizens, for satisfying their collective needs, and for promoting their economic and social welfare.
- Majority of the countries in the world are democratic in nature.
- A democratic form of government is expensive due to regular elections and other such activities.
- There has been increasing in public expenditure over years due to such a form of government.
- Hence, democratic governments lead to increase in public expenditure.
Concept: Structure of Public Finance - Public Expenditure
Is there an error in this question or solution?