Expenditure Structure of Stock Market

Expenditure evaluation means to search out the most efficient use of public funds out of available alternatives. It is required to consider all relevant costs and benefits of a given project to compare it with other projects of similar nature, but practically it is an uphill task to encompass all types of costs and benefits of a public project.So project evaluation is confined to real effects rather than the pecuniary ones. The pecuniary benefits refer the gains of one person at the cost of others just by change in relative prices, the real benefits are either direct or indirect, tangible or intangible and permanent or transitory.

The indirect and intangible effects are imputed by shadow prices or by some other methods. Project evaluation also counts for any possible effect of a project on macro-variables. Like, income distribution, employment and inflation., Appropriate weights are assigned to each variable for numerical exercise. If the effects of a project are spread over time, their present value by discounting is used for comparison. Further, it is also taken into account whether resources withdrawal for financing the project is from private saving or from private consumption.