In general, it is believed that for realizing the objectives of the state which tend to determine the magnitude and pattern of public expenditure, public expenditure itself is an important instrument. In federal form of government like India, the magnitude and pattern of public expenditure of the constituent states is determined jointly by the policy of the central government as well as the state governments. The magnitude and pattern of public expenditure are determined by the existing requirements of the community and the political ideology of the party in powers. Thus, in the light of the broad decision of legislature, a group of officials who carry out the administration determined a series of value judgment for its operation. Hence, the objective of public expenditure differ time to time. However, a general pattern of the objectives of public expenditure has been formulated in the state. These general objectives take the form of provision of a minimum of certain services for the social, economic and physical security of the people, promotion of full utilization of human and other resources and the stabilization of the economy. An attempt to implement these objectives in the state of Mizoram has led to the growth in public expenditure. Public wants have been expanding, social welfare emphasis has been rising, population has been rising, price is rising and the direction of public expenditure towards economic development have all contributed to the stupendous growth of public expenditure in the state of Mizoram