The paper “ The Effect of Public Expenditure on Income Distribution” is a convincing example of a statistics project on macro & microeconomics. The public expenditures as committed by the governments are an essential part of the government’ s public policy for the development of all segments of society on an equal basis with measures for the marginalized social groups for their economic uplifts. The governments are committing their expenditures under different heads for example general administration, defense, law enforcement, education, health, social welfare, religious ad culture activities, distribution of power and fuel, promotion of various sectors for the social uplifts of the society like agriculture, industries transportation, and other economic services.
The expenditures under the various head are calculated by the government on the basis of budgetary measures. Different types of budgetary documents are utilized by the government for the collection of data, a compilation of data. Its comparison with the corresponding previous year and the proportion of each head had with overall public sector expenditure. The governments are incurring expenditures for the promotion of a balanced society with the development of all the faculties relating to human development in line with the major targets and objectives.
The governments are making their calculation for the fulfillment of national and international requirements to promote national growth of the economy, to adopt new technologies in various disciplines of human development. The government expenditure re divided into heads and subheads. In addition, the governments have classified essential and nonessential expenditure on the basis of their geopolitical and economic environment. These expenditures as committed by the government are having their developmental impact on the growth and promotion of human society.
The guiding principles for the government to classify and prioritized their expenditure are on the basis of the composition of human society in economic terms. Each country has divided the society into various groups and subgroups depending on the criteria for classification. For example, the majority of the country has divided their countrymen by considering the level of poverty as prevailing in their society as the groups living under the poverty line or above the poverty line depending on the method for the selection of criteria for measuring poverty level.
Some other countries have divided their society on the basis of the distribution of income in society as the lowest income group, low-income group, middle-income group, high-income group, and the highest income group. In many countries of the world for example in Thailand major portion of the income is distributed in the highest income group for example as table 1 below is indicating that 41.48 % of income is existing in the highest income group and if the high-income group and the highest income group are calculated together, 63.41 % of the income is concentrated in both these two groups.
The governments are making their plans to devise strategies for the distribution of income from the higher income group towards the lower-income group in the form of imposition of taxes to the highest class and giving concessions to the groups belonging to the lower-income categories. In Thailand distribution by income class as in 2007 has been arranged in the form of the following table. The table has been divided into four columns at variable as shown in the table include income class, percentage of household income per month of each income class and percentage of income.