What did Wagner say regarding public expenditure do you think so?

In short, Wagner’s law states that public expenditure rises faster than national output. This implies that as national income increases, the size of government expenditure also increases to meet the increased social, administrative and protective function of the state.

Who was Adolf Wagner?

Adolf Wagner (1 October 1890 – 12 April 1944) was a Nazi Party official and politician who served as the Party’s Gauleiter in Munich and as the powerful Interior Minister of Bavaria throughout most of the Third Reich.

Which Law is introduced by Adolf Wagner?

Wagner’s law, also known as the law of increasing state activity, is the observation that public expenditure increases as national income rises. It is named after the German economist Adolph Wagner (1835–1917), who first observed the effect in his own country and then for other countries.

What is Wagner’s hypothesis?

Wagner’s hypothesis focuses on the nexus between economic growth and the size of government expenditure and postulates that the latter grows at a faster rate than the former over the period of time to meet the rapid demand of industrialization and development in the economy.

What are the factors working behind increasing govt activities according to Wagner?

Wagner law of increasing state activities.

  • (i) The Central and local government activities keep on increasing regularly.
  • (ii) They perform both the old and new functions more efficiently and completely.
  • (iii) The expansion and intensification of government function increase public expenditure.
  • (i) Per capita income.

Who was Alford Wagner?

Adolph Wagner (25 March 1835 – 8 November 1917) was a German economist and politician, a leading Kathedersozialist (academic socialist) and public finance scholar and advocate of agrarianism. Wagner’s law of increasing state activity is named after him.

Who suggested that public spending should be limited?

Until the 19th century, public expenditure was limited as laissez faire philosophies believed that money left in private hands could bring better returns. In the 20th century, John Maynard Keynes argued the role of public expenditure in determining levels of income and distribution in the economy.

Which is the highest public expenditure in India?

Among the various sectors, defence has the highest allocation. The 2021-22 Union Budget allocated over 13% of its total budget to defence. In the 2021-22 Budget, the government set aside Rs 4,78,196 crore for defence expenditure. This was equal to 3% of its total GDP.

Which of the following is relevant for Wagners Law of increasing state activities?

Adolph Wagner a German economist propounded the Law of increasing State activities. He gave a relationship between level of development and public expenditure. The Central and Local Government activities keep on increasing regularly.

Who is Professor Musgrave?

Bio: Paul Musgrave is assistant professor of political science at the University of Massachusetts Amherst. He studies U.S. foreign policy, international relations theory, and how oil revenues change political institutions.

What are the four scope of public finance?

Prof. Dalton categories the scope of public finance into four areas which includes public income, public expenditure public debt and financial administration.