Cost-Benefit Analysis

Any government economic project Should involve cost-benefit analysis Before implementation. Calculation of cost must involve Market survey cost, establishment cost, labor cost Production cost, marketing cost and so forth. Calculation of benefit must include Financial benefit, social benefit Political benefit and so on. The governments should take into account Whether there is skilled manpower In the country to run the project or not? They should also consider The possibility of change Of technology to be used In near future in other countries. Thus the viability of the project Can be justified before implementation In order to avoid wastage of money and time.