Vol. 2, Issue 3, Part G (2016)

Abstract
Public Income and Expenditure plays a very significant role to achieve the major economic goals of growth, stability, equity and efficiency. The income of the government through all sources is public income and public expenditure refers to Government expenditure i.e. Government spending. Keynes in his macroeconomic theory advanced the role of public expen­diture in the determination of level of income and its distribution is now well recognized. Keynesian macroeconomics provides a theoretical basis for recent developments in public expenditure programs in the developed countries. It is incurred by central, State and Local Governments of a country.as we know that public expenditure is used as a lever to raise aggregate demand and thereby to get the economy out of recession, it is also used to improve income distribution to direct the allocation of resources in the desired lines and to influence the composition of national product. In the developing countries also, the role of public expenditure is highly significant. On the contrary, Government needs to discharge a number of functions and meet its public expenditure. Since the functions of modern government have increased in scope and variety, therefore the Government has to tap all possible resources to increase public revenue. The importance of public revenue has greatly increased during recent times. This paper is an attempt to analyze the trend and pattern of public expenditure in India.