▁benefit , ▁and ▁who ▁can ▁pay . ▁Public ▁exp end iture ▁means ▁the ▁exp end iture ▁on ▁the ▁development al ▁and ▁non - development al ▁activity ▁such ▁as ▁construction ▁of ▁road ways ▁and ▁d ams , ▁and ▁other ▁activity . ▁ ▁Princi ple ▁of ▁maximum ▁social ▁advantage ▁ ▁The ▁criteria ▁and ▁pre - cond itions ▁for ▁arriv ing ▁at ▁this ▁solution ▁are ▁collect ively ▁referred ▁to ▁as ▁the ▁principle ▁of ▁maximum ▁social ▁advantage . ▁ ▁Tax ation ▁( g overn ment ▁re venue ) ▁and ▁government ▁exp end iture ▁are ▁the ▁two ▁tools . ▁Ne ither ▁of ▁excess ▁is ▁good ▁for ▁the ▁society , ▁it ▁has ▁to ▁be ▁bal anced ▁to ▁achieve ▁maximum ▁social ▁benefit . ▁Dal ton ▁called ▁this ▁principle ▁as ▁“ Max imum ▁Social ▁Adv antage ” ▁and ▁P ig ou ▁term ed ▁it ▁as ▁“ Max imum ▁A ggreg ate ▁W elf are ”. ▁ ▁Dal ton ’ s ▁Princi ple ▁of ▁Max imum ▁Social ▁Adv antage ▁– ▁maximum ▁satisfaction ▁should ▁be ▁yield ▁by ▁striking ▁a ▁balance ▁between ▁public ▁re venue ▁and ▁exp end iture ▁by ▁the ▁government . ▁Econom ic ▁w elf are ▁is ▁achieved ▁when ▁marg inal ▁utility ▁of ▁exp end iture ▁= ▁marg inal ▁dis ut ility ▁of ▁tax ation . ▁He ▁explains ▁this ▁principle ▁with ▁reference ▁to ▁▁ <0x09> ▁ ▁Max imum ▁Social ▁Ben ef it ▁( M SB ) ▁ ▁Max imum ▁Social ▁Sac rifice ▁( M SS ) ▁ ▁It ▁was ▁introduced ▁by ▁Swedish ▁Econom ist ▁“ E rik ▁Lind ahl ▁in ▁ 1