Control of Public Expenditure

The necessity to control public expenditure in order to check misuse of public funds. The most important means of control are as follows -----

1)Budgetary Control:- Budgetary preparation is most primary stage of control of expenditure. Budget is well thought-out plan of governmental activities during the coming year. How much of the public funds are to be spent for which particular activities, which particular department, what should be the allocation of public funds for the use of particular department are all specified in the budget frame.

2)Legislature Control:- After the budget preparation it has to be presented in the legislature for its approval. There occurs debate in the legislature where the members seek clarification and justification of expenditure programs. After the critical study expenditures estimated originally may be enhanced or kept  unchanged according to the merit of the case.

3)Administrative Control:- The rules and regulation ensure that no amount is spent without proper sanction to same other purpose for which it is not sanctioned. There is a elaborate body of rules to fix responsibility on specific executive personnel for the funds spent.

4)Audit Control:-  The next step is scrutiny of the accounts and audit control. Every department has its accounts section which scrutinizes all accounts of  expenditure and ensure that public funds are spent according to rules of property, economy and efficient utilization.