Question

Give two reasons for an increase in public expenditure in recent times. Give any two points.

State any two reasons for the growth of public expenditure in a country like India in recent times.

Why has the public expenditure increased in recent times? Give any three reasons.

Account for the consistent increase in public expenditure in India.

What is meant by Public Expenditure? Explain three reasons for an increase in public expenditure in India.

Discuss any five reasons for the growth of public expenditure in India.

Answer 1

Public expenditure refers to the expenses incurred by public authorities for their own upkeep as well as for meeting people' collective requirements or advancing their economic and social welfare.

Following are the main reasons behind consistent growth of public expenditure in India.

1. Development Projects: In India, we have taken up a large variety of development projects under the five year plans. This has led to increase in public expenditure.
2. Increase in Population: The growth of population has necessitated the expenditure on providing transport and communication facilities, educational institutions, health facilities, etc. This has led to a huge growth of public expenditure in recent years.
3. Increasing Defence Expenditure: The government has to spend more and more on providing internal security to its people.
4. Rise in price level: As a result of the rise in the price level, public expenditure has gone up very high. The reason is that the government has to purchase various goods and services from the market at higher prices.
5. Urbanisation: As more people migrate to cities, the government has to spend more on urban infrastructure, housing, public transportation, and sanitation. Urbanisation has increased the pressure on public services, leading to higher spending in these areas.