The reasons for government-expenditure in the running of the economy include the following;
- To ensure economic welfare of the citizens: Government carries out expenditures in order to promote and increase the economic welfare of its people. This goes a long way to improve on the standard of living of its people.
- To ensure security of goods and property: The life and property of its people are protected through the provision of social services such as defense, law and order, fire brigade etc.
- Provision of public and merit goods and services: Public and merit. Goods and services are very expensive to produce by the private sector. It is therefore the government's responsibility to provide these goods and services in order to bridge the gap between the rich and the poor.
- To reduce unemployment: The government carries out expenditure on some economic activities in order to increase the rate of employment.
- To ensure reduction in crime wave: Government’s expenditure is also aimed at reducing the level of crime wave in the economy. This encourages social stability and economic growth and development.
Reasons for the increased government expenditure in Cameroon
There has been an increase in public expenditures in recent years because of the following reasons:
- A rise in the national debt
- Increase in economic infrastructure
- Increase in social security payment
- Increase in population or population growth
- A rise in administrative cost due to continuous service creation and recruitment
- Increase in social infrastructure
- Increase in public investment
- Increase in security/defense expenses especially with the war against Boko Haram
- Increased unemployment
- Contribution to international Organizations
- Corruption and high level embezzlement in the public service
- Weak parliamentary institutions
