Effects of High Reccurent Expenditure Mathematics & Economics Essay (Essay Sample)

In the less developed countries mostly African countries , the government usually spend more in provision of public goods and service.
The increment in the public finance and public expenditure has negativity in the economy of the state . This usually leads to an increase in the wage bill that is wage bill at the top and ceremonial . High wage bill is associated with the high wage rate and high inflation in the country .
Kenya is one of the country with high wage rate but poor level of services . The wage spirals up with a lot of money in the economy hence absorptive capacity among the citizens is high (Can't spend money.) The public wage bill is high but the employees are not well paid .
In Kenya , the income distribution graph is high unionised with low equity in income . Evidently the rich in Kenya becomes extremely rich and the poor becomes extremely poor . The extremely rich are few while the