Question

Critically evaluate the role of credit for development

Answer 1

Public facilities are those provided by the government, instead of by individuals or private sources. For this reason, they may be either highly subsidised or totally free of cost. They are important because many persons do not have enough income to be able to avail facilities provided by the private sector, resulting in difficulties faced like inadequate healthcare, poor nutrition, etc.
One public facility is the Public Distribution System (PDS) which provides fair average quality of foodgrains and other essential items to the weaker sections of depopulation at subsidised prices. The other is healthcare in government hospitals and dispensaries, which is provided to all at subsidised rates. This includes outpatient as well as hospitalisation facilities.

Answer 2

Explanation:

Credit plays a vital role in economic growth and development.

Credit availability at cheaper rates of interest encourages the business or firms to borrow more.

Borrowing more money will facilitate the growth of business or increase in production in the economy.

So, credit supply is the key factor for economic development.