Q.Explain various reasons for the growth of public expenditure.
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Start your 14-day free trial to unlock the full solution →Modern governments spend far more than they once did. The growth of public expenditure in India is caused by several economic, social and political factors; four important reasons are explained below.
1. Rise of the welfare state: Governments today take responsibility for the welfare of citizens, spending large sums on education, public health, housing, social security, poverty-alleviation and subsidies. This welfare role continuously enlarges public expenditure.
2. Growth of population and urbanisation: A rising population needs more schools, hospitals, water supply, transport and civic amenities, while rapid urbanisation requires heavy spending on roads, sanitation and city services — both push expenditure up.
3. Defence and internal security: Maintaining armed forces, modern weapons, police and internal security in a large country involves a huge and rising expenditure that the government cannot avoid.
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