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Tamil Nadu Board of Secondary EducationHSC Commerce Class 12

What are the functions of a modern state? - Economics

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Question

What are the functions of a modern state?

Long Answer

Solution

Functions of Modern State:

  1. The modem state is a welfare state and not just a police state.
  2. The state assumes greater roles by creating economic and social overheads, ensuring stability both internally and externally, conserving resources for sustainable development, and so on.

(1) Defence:
The primary function of the Government is to protect the people from external aggression and internal disorder.
The government has to maintain adequate police and military forces and render protective services.

(2) Judiciary:
Rendering justice and settlement of disputes are the concern of the government.
It should provide an adequate judicial structure to render justice to all classes of citizens.

(3) Enterprises:
The regulation and control of private enterprise fall under the purview of the modem State. Ownership of certain enterprises and operating them successfully are the responsibilities of the government.

(4) Social Welfare:
It is the duty of the state to make provisions for education, social security, social insurance, health, and sanitation for the betterment of the people in the country.

(5) Infrastructure:
Modem States have to build the base for the economic development of the country by creating social and economic infrastructure.

(6) Macro–economic policy:
The Government has to administer fiscal policy and monetary policy to achieve macro¬economic goals.

(7) Social Justice:
During the process of growth of an economy, certain sections of the society gain at the cost of others.
The Government needs to intervene with fiscal measures to redistribute income.

(8) Control of Monopoly:

  1. The concentration of economic power is another evil to be corrected by the Government.
  2. So, the state intervenes through control of monopolies and restrictive trade practices to curb the concentration of economic power.
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Functions of Modern State
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Chapter 9: Fiscal Economics - Model Questions [Page 210]

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Samacheer Kalvi Economics [English] Class 12 TN Board
Chapter 9 Fiscal Economics
Model Questions | Q 31. | Page 210
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