ABSTRACT
Public expenditure policy, in its quantitative and qualitative aspects, is reflected and recorded in the government's budget. The budget is defined as the coordination and control of expenditures and resources. The strategy of import substitution penalises both exports and backward linkage import substitution. The costs of a policy go beyond simple resource misallocation to adverse effects on technical efficiency, innovations and saving. Pertaining to the former, a major theoretical issue has been the natural tendency of income distribution in the course of development. Merle Fainsod emphasised the innovating thrust of development administration. In his theoretical approach he stated: development administration is a carrier of innovating values. Almost everyone looked at the development of poor countries solely in terms of economic goals. Development geared to the satisfaction of needs beginning with the needs of the poor who constitute the world's majority.
