Why Do Governments Find It So Hard To Control Public Expenditure? :: essays research papers fc

Why Do Governments Find It So Hard To Control Public Expenditure?     Since the 1970s salary increase public expenditure has become a politicallysalient issue, with the focus being on the difficulties experienced in trying tocontrol it. In effect to answer a question concerning why governments find it ambitious to control public expenditure it is first necessary to look at the conditionsfor the growth in public spending. There are three approaches which attempt togive reasons for growing public expenditure which I in guide to scrutinise, theseare, the societal arranging approach, the political system approach and thegovernmental system approach. An evaluation of these approaches should in turnshed light as to why governments find rising public expenditure hard to control.Following this approach which gives a wide outlook on the problems facinggovernments in controlling public expenditure, I will look at the chain armour 1979conservative government as it in p articular targeted controlling expenditureupon taking office.     Under the societal system approach one reason why a growth in publicspending can be seen to have occurred is due to Wagners law of increasingstate activity. Wagners claim is that as per capita solid income increases inparticular nations, they will spend a higher proportion of national productthrough government. As Wagners reasons for increased public expenditure tendto be centralised around industrialisation and its associated effects it is notsurprising to find that he thought the dumbness of urban living would increase well-disposed frictions to such an extent that the government would be called in tohandle it. That is to say, urban living would result in the need for enhancedpolice protection and another(prenominal) forms of government regulation. Wagner alsobelieved that with growing industry certain investments would require so muchcapital that the state would have to provide it. He thought at that place would also bepublic goods that may not be in the interests of an entrepreneur to provide.     There are counter arguments to Wagners suggestions, the first of theseis that it could be argued that increased density would provide opportunitiesfor economies of scale. Thus, the proximity of people to one another couldresult in networks of personal support, lessening the need for public services.Secondly, contrary to Wagners arguments for public good formulation by the state,it is possible to show other countries that either do without it, or provide foruser charges. This shifts the burden from general revenues to those who benefitmost directly.     Another reason for rising government expenditure under the societalsystem approach is expressed via Tarschys demonstration effect. He suggeststhat the coming of television "has led to increased consciousness of the standard of