Costs And Benefits Of Public Expenditure Programs

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Introduction The purpose of this paper is to critically examine and discuss the underlying theme of differences of opinion related perceptions of costs and benefits associated with public expenditure programs. In this course, three of the lessons that were closely connected were cost-benefit analysis, public expenditures related to social insurance and income maintenance, and expenditure programs for the poor. The goal of this analysis is to demonstrate how perceptions of costs and benefits for expenditure programs is often based more on rhetoric than actual fact. This paper begins with a brief review of the take-away of the three lessons from which this analysis is based. Then, a full examination of the relationship and issue of the perception of costs and benefits of public expenditure programs is provided.
Cost-Benefit Analysis The first lesson of importance related to this analysis was the lesson on cost-benefit analysis. On the surface, cost-benefit analysis is supposed to be a truly objective analysis of the costs associated with a particular project or program, and the benefits of that program (Driesen, 2005). If the costs outweigh the benefits, then the project or program is not undertaken. However, if the benefits outweigh the costs, regardless of what the perception might be about the project or program, then it is pursued. The deeper issue that must be considered is whether cost-benefit analysis is purely an objective task that is based solely on fiscal
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