explain various reasons for the growth of public expenditure
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Explain various reasons for the growth of public expenditure ...
There is a continuous growth in public expenditure in developing countries like India due to various reasons as follows: Increase in the Activities of the Government: These functions include the spread of education, public health, public works, public recreation, social welfare schemes etc.
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What are the reasons for the growth of public expenditure?
Causes of Increase in Public Expenditure
Increase in backward area and population.
Growth of state functions.
Higher price-level and rising cost of public services.
Increase in national wealth.
Increased ability to tax.
War and prevention of war (defence)
Provision of public utility services.
Expansion in social services.
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