Vol. 1, Issue 4, Part G (2015)

Abstract
The purpose of this work is to study in detail the role of public expenditure in the development of primary, secondary and tertiary sector in Punjab. Public expenditures are those expenditure which are made by the government, social security agencies, local governments and organizations affiliated with them. In this paper Public Expenditure is divided into two classes i.e., Expenditure of Revenue Account and Expenditure of Capital Account. Development expenditure includes the money spent on things like economic, social, and community services. The costs incurred for administrative support, defence support, debt servicing, subsidies, etc. are considered non-developmental expenses .Civil expenditures such as general services, social and community services, and economic services, as well as defense expenditures, are examples of revenue expenditures. On the other hand, capital expenditures include expenses for things like defense, general services, social and community development, and economic development. Public expenditure has led to the tremendous growth in the state of Punjab. Public spending affects GDP right away because it is a component of GDP. In other words, a boost in public spending results in a corresponding growth in GDP. Additionally, because income is a key factor in determining consumption, an increase in income will be followed by an increase in consumption, creating a positive feedback loop between the two, just as it does in the event of shocks to export, investment, or autonomous consumption.