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Question
Government spends on child immunization programme. Analyse its impact on Gross Domestic Product and welfare of the people.
Solution
Government expenditure on child immunisation programme is an expenditure related to productive expenditure which enhances the productive capacity of an economy. Vaccination reduces the number premature deaths and ensures better or efficient utilisation of resources. Children are able to remain healthy by preventing them from contracting deadly diseases, and thereby the quality of the labour force is improved in the production process. This increases production efficiency, and hence, GDP growth
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