Question

Explain any two causes for the growth of public expenditure.

Answer 1

The term "public expenditure" refers to the costs that the government or various government entities incur to address common needs that people are unable to effectively meet on their own, such as infrastructure, health care, education, and other areas required to ensure that the economy grows and develops in a way that promotes social welfare.

Two causes for the growth of public expenditure are as follows:

1. Growth of Population: As the population grows, it increases the state's responsibilities, which in turn causes public spending to rise.
2. Development Programmes: The primary driver of the recent increase in public spending has been an ongoing series of development initiatives. The construction of roads, trains, power plants, and other infrastructure is a top priority for the government, which is investing large sums of money in this area.