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Which of the following may be the reason behind the growth of public expenditure in India? - Economics

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Question

Which of the following may be the reason behind the growth of public expenditure in India?

Options

  • Increase in defence expenditure

  • Population growth

  • Both Increase in defence expenditure and Population growth

  • Neither Increase in defence expenditure nor Population growth

MCQ
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Solution

Both Increase in defence expenditure and Population growth

Explanation:

The growth of public expenditure in India can be linked to numerous sources, such as:

  • Defence expenditure has increased dramatically as India enhances its military capabilities and invests in national security.
  • Population expansion increases demand for public services such as healthcare, education, infrastructure, and social welfare, all of which contribute to higher public spending.

Both of these causes are major contributors to India's rising public expenditure.

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Chapter 11: Public Expenditure - Exercise [Page 184]

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Goyal Brothers Prakashan Economics [English] Class 10 ICSE
Chapter 11 Public Expenditure
Exercise | Q 12. | Page 184
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