Question

Government spending is difficult to change and not easy to implement. Explain.

Answer 1

Inadequate statistical information as regard to the saving, income, expenditure, employment, investment, etc. makes it difficult for the public authorities to change and formulate an effective and rational government spending. Also narrow and rigid tax structure in the countries is a significant limitation to the successful implementation of the government spending. There is complete absence of conditions conducive to the growth of integrated and well-knit policy. Unless the people of a country understand the implications of the government spending and extend full cooperation with the government in its imple­mentation, it cannot succeed. In developing countries, most of the people are illiterate and thus fail to understand the implications of the policies. Weak Administrative Machinery and political instability is also a major limitation