Public Expenditure and Public Debt

The expenditure of the government is known as public expenditure and the loans taken by the government are known as public debt. The income of the government is also known as public income. Public income is of two types - tax revenue and non-tax revenue. Public expenditure is of two types - development expenditure and non-development expenditure. Government expenditure on activities such as building roads, bridges, ports, starting new enterprises and educational institutions, etc. is known as development expenditure. Expenditure on war, interest, pensions, etc. is known as non-development expenditure.

The loans taken by the government are known as public debt. Public debt is of two types - domestic debt and foreign debt. Domestic debt is the loan taken by the government from individuals and institutions within the country. Foreign debt is the loan taken from foreign governments and international institutions. The Comptroller and Auditor General oversees the accounts of public income , public expenditure and public debt of the Centre and the States.