Theoretical Foundations And Systematic Review of Public Expenditure Management: Implications For Effective Education Spending

Effective management of public expenditures lies at the core of sustainable fiscal policy and economic growth. This systematic literature review examines the evolution and application of key economic theories underpinning public expenditure management, with a particular focus on their relevance to education funding. The objective of the paper is to amalgamate the underlining theoretical frameworks— Keynesian Economics, Neoclassical Theory, Public Goods Theory, Human Capital Theory; along with Musgrave’s Three- Function Model Critical scrutiny is made of the implications for efficiency allocation, fiscal responsibility & equity in resource sharing Pubic choice theory and Cost-benefit analysis of PFM TRANSACTIONS as well. Based on the experienceing world and empirical results, as well as recent scientific achievements of Uzbekistan in development of public finance this review emphasizes that the external (reactive) and internal (developmental) potential views have been developed dynamically in public finances. Results highlight that, whereas exogenous theories emphasize stability and efficiency in the use of fiscal resources, endogenous strategies engage in long term investments on human capital as a promoter for growth. It end with some policy insights that developing countries interested in pursuing fiscal prudence together with inclusive development could obtain from education expenditure reform.