Q.What are the functions of Modern State ?

The modern welfare State performs both protective (obligatory) functions and welfare/developmental (optional) functions, greatly widening the scope of public finance.

Unlike the old "police State" that limited itself to defence and law and order, the modern State is a welfare State that actively promotes the economic and social well-being of its citizens. Its functions are grouped as:

1. Obligatory (protective / essential) functions:
   • Defence against external aggression.
   • Maintenance of internal law and order and police.
   • Administration of justice.
   • General administration and protection of citizens' rights.
2. Optional (welfare and developmental) functions:
   • Provision of education, public health and sanitation.
   • Social security measures — old-age pensions, unemployment relief, care of the weaker sections.
   • Provision of economic infrastructure — roads, power, irrigation, transport and communication. …