Guidelines that should be followed by the government in its expenditure

Guidelines that should be followed by the government in its expenditure.

I. Maximum social benefit/optimal benefit. Government spending should benefit as many people as possible.

II. Flexibility. Should be elastic enough to accommodate changing circumstances.

III. Economy. Should be capable of being changed to accommodate prevailing economic circumstances.

IV. Equity. Should aim at distributing incomes fairly.

V. Sanction. Government spending must be approved by the relevant authority to enhance accountability.

VI. Accounting. Proper accounting records should be kept to facilitate good financial management.

VII. Productivity. A larger proportion of the national income should be spent on development projects.

VIII. Surplus. Expenditure should be less than the total revenue collected.

IX. Elasticity - should be capable to being expanded/contracted depending on the size of the economy.

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lemass answered the question on February 14, 2019 at 16:12

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