Question

In: Finance

Do you think the Federal Government would function differently if it had to show expenditures to...

Do you think the Federal Government would function differently if it had to show expenditures to the public?

Solutions

Expert Solution

Federal government will be functioning differently if it has to show expenditure to public because then it would be accountable to the public disclosure and it will be trying to cut on unnecessary expenses in order to form an impression to the public that it is a responsible Government and it is trying to explain the public money in the proper way in order to reduce the equality of the income in the society.

Federal government would be trying to use the public money in the best possible way which will be more on the public expenditure program which will be undertaking a larger section of society and benefiting them in order to reduce the income inequality in the economy.

Federal government will be more accountable and it will always be trying to increase its expenditure towards the public because it will be helping this government in order to attract the votes in the elections because a higher responsible government who is trying to allocate high amount to the public expenditure will be generally gaining a lot of public following and will be having a upper hand in the elections

It will also increase the transparency and public disclosure mechanism in the economy in a better way and it will help the government to fix its own accountability to expand the public money in a better way so that various sections of society can be benefited and principles of equality can be maintained.


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