Question

I have to make a PowerPoint presentation on Impact of Govt Expenditure on economic Growth of India so please give me some details​

Answer 1

Answer:

The Government has a huge role to play in the economy. Some of its key roles are as follows:

Provides a well functioning legal and political system:-

Any economy facing political or economic turmoil is not conducive to economic growth since it has very little trust in the economy. Moreover, there is uncertainty in the economy and people are also unwilling to invest. The government needs to make sure that there is a stable political environment. It’s very important on the part of the government to provide good legal and political framework.

lays regulatory role to provide a competitive market:-

There should be certain regulations to ensure that the economy does not drift to the monopolistic situation.The government needs to think about trade policies with foreign countries, regulation on natural resources available in our country etc.

Stimulate the economy by increasing the government spending:-

This was one of the philosophies given by one of the renowned economist John Maynard Keynes. He was of the view that government’s role is very important when the economy is in recession or depression like situation and the government should increase spending to have a pickup in the economic activity.