Employees Absenteeism Executive Summary

.Causes of tremendous increase in public expenditure?
Public Expenditure refers to Government Expenditure. It is incurred by Central and State Governments. The Public Expenditure is incurred on various activities for the welfare of the people and also for the economic development, especially in developing countries. In other words The Expenditure incurred by Public authorities like Central, State and local governments to satisfy the collective social wants of the people is known as public expenditure.
Ans: 1. Wagner’s law of public welfare: According to wagner, the main casue if increase in public expenditure is the multiplication of the activities of the govt.Since independence , noth the development and non-development activities of the govet have considerably increased. Govt exp has increased on account of the expansion of public sector. In order to promote welfare of the people , govt has to spend large amounts on their merit wants such as construction of roads , parks etc.Public exp has also increased coz of external factors.

2.Defence exp: There has been enormous increase in denfence exp in india during planning period. Acc to eco survey the defence exp of central govt has increased sifnificantly . The defence exp has increase tremendously due to modernaisation of defence equiplemnt used by army , navy and airforce. India cannot postpone modernisation in defence specially when its neighbouring countries are buying the latest defence equipment from developed countries of the world.
3. Increase in prices: Rising prices also account for the increase of public expenditure in India. Prices have been rising in india since 1956.Cozof increased prices, govt has to spend more in order to get the same amount of goods and services as before. Govt employees have to be paid more salaries, more dearness allowance and more pension.Exp of development projects also increases.
4.International association: After world war II many international organisation were set up . India has been a member of all these. Their membership entails financial obligations.On account of her memebeship of such world orgainsation such as UNO,WHO,IMF,SAARC etx public exp in india has increased very much. Besides the govt has to establish its embassies abroad. It has also added to public exp .Good deal of exp is also incurred on international conferences.
5.Development of industries: Setting up key and basic industries requires a huge capital and profit may arise only in the long run. It is the govt which starts such industries in a planned economy. India needs a strong network of infrastructure including transport,communication, power etx. The public sector has created a strong infrastructure as a support base for our industrial sector by investing huge capital.The govt has not only improved the rail,air and sea transport but has also expanded them manifold.
6. Maintainance of law ,peace and order: Public Utilities, Highways, and Education. - Among the important services which modern governments supply, and which were formerly supplied by individuals, are the various classes of public service enterprises, highways, and education. Many countries have gone further than the United States in supplying the services of public utilities. In some countries the railroad, telephone, and telegraph are operated by the government, while these are still privately operated in the United States. Yet the events of the era when the state and Federal governments were active in internal improvements are familiar to every student of American history. The demand for public ownership seems to be increasing, and the number of public enterprises is rapidly growing larger. This is especially true in cities. The recent emphasis placed upon education, and the supplying of this utility by the public to such a large extent, has had an important influence in causing expenditures to increase. The same has been true with highway expenditures, since highways are no longer supplied by individuals.
7.Democratic Institution:A democratic government has to incur increasing expenditure on elections, legislatures, ministries, international conferences, embassies abroad etc. Public expenditure also increases when a country becomes a member of international organisations like UNO, WHO etc.
8) Development Of Agriculture :- The government may develop agriculture by providing seeds, fertilisers, irrigation facilities, modern implements, cheap loans etc. All these will increase public expenditure.

9.Expenses on independent judiciary: Urbanisation has led to increasing expenditure on civil administration. Government expenditure on courts, police, transport, railways, schools and colleges, public health measures, water and electricity supply, public parks, libraries etc. have increased due to growth of towns and cities.