Q. Analyse the reasons for modern government spending a lot of money on different activities without earning profit. (5 points)
Answers
Answer:
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Explanation:
Modern governments spend a lot of money on different activities without earning profit because
1 The main aim of the government is to work for the welfare of the people.It does not look for profit like the private sectors but tries to provide services by implementing various projects and schemes.For this the government raises money through taxation.
2.Some projects require large expenditure. This cannot be borne by the public sector. These include construction of dams,railways, roads etc.These are for public utility and so the government takes the responsibility of doing it.
3.Moreover, providing health facilities and education is also the duty of the government. These do not bring profit to the government directly but improves the standard of living of the people. The government do take care of the poorest sections and minorities by implementing various schemes which provide security to them.
Explanation:
Modern governments spend a lot of money on different activities without earning profit because
1 The main aim of the government is to work for the welfare of the people.It does not look for profit like the private sectors but tries to provide services by implementing various projects and schemes.For this the government raises money through taxation.
2.Some projects require large expenditure. This cannot be borne by the public sector. These include construction of dams,railways, roads etc.These are for public utility and so the government takes the responsibility of doing it.
3.Moreover, providing health facilities and education is also the duty of the government. These do not bring profit to the government directly but improves the standard of living of the people. The government do take care of the poorest sections and minorities by implementing various schemes which provide security to them.