The government spends money for various purposes like defence, administration, economic development and welfare of the people. This is called Public Expenditure. In other words, the expenditure incurred by the government in the interest of public is called public expenditure. In the 20th century, with the advent of welfare states, the role and scope of the modern governments has expanded. Hence public expenditure has also increased. In India. Central and State governments have their own expenditures.