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Question
Mention four causes for increasing public expenditure in modern times.
Answer in Brief
Solution
- In the modern times, the states are welfare states. As welfare state, it has to undertake so many welfare functions like, education, health, etc.
- The spread of urbanisation is another factor for the growth of public expenditures.
- In developing countries like India, the government has to spend huge amount on the rural development.
- The growth of democracy and socialism everywhere has led to increase in public expenditure.
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