1. Critically discuss Peacock and Wiseman’s explanation of the growth of government expenditure. 2. Discuss the underlying factors that give rise to public expenditure growth in Lesotho 1. Many bureaucrats believe that the Development model (by Musgrave and Rostow) is easier to understand than Wagner’s Law/model in explaining the theory of public expenditure. Peacock and Wiseman’s explanation of the growth of government expenditure

Peacock and Wiseman’s explanation of the growth of government expenditure

The growth of government expenditure has been a topic of increasing interest in recent years, particularly in the context of Lesotho. Peacock and Wiseman (2016) provided a comprehensive explanation of the growth of government expenditure, arguing that it is largely driven by a range of factors such as population growth, inflation, and the need to provide public services and infrastructure. In their view, government expenditure is a consequence of policy decisions taken by governments. In terms of population growth, Peacock and Wiseman (2016) argued that an increasing population will result in a growth in government spending as more people need to be served. This is due to the fact that governments need to provide public services and infrastructure to meet the needs of an increasing population. As a result, the cost of public services, such as health care and education, increases. Inflation is also seen as an important factor driving the growth of government expenditure, as higher inflation leads to higher wages and prices, thereby increasing the cost of providing public services. Additionally, Peacock and Wiseman (2016) discussed the increasing demand for government services and infrastructure as a factor driving government expenditure. This is due to the fact that governments need to provide public services and infrastructure to meet the needs of their citizens. As a result, governments need to spend more money on public services and infrastructure in order to meet this demand. This is particularly relevant for Lesotho, as the country is facing. Cont…