मराठी

Government Has Started Spending More on Providing Free Services like Education and Health to the Poor. Explain the Economic Value It Reflects.

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प्रश्न

The government has started spending more on providing free services like education and health to the poor. Explain the economic value it reflects.

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उत्तर

When there is an increase in government expenditure in providing free services such as education and health to the poor, it improves the welfare of the nation. This has an effect on the economic value of the nation. The government can reallocate resources so that social and economic objectives can be met in the following ways:

  1. The government ensures productive expenditure to maximise the welfare of the nation with the minimum level of profit.
  2. The government regularises the activities of the private sector to provide social benefit to the poor.

Hence, it helps to bridge the gap between the rich and poor sections of society

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2013-2014 (March) Foreign Set 2

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S. No. Content Rs (in crores)
1. Revenue Expenditure 100
2. Capital Receipts 40
3. Net Borrowings 38
4. Net Interest Payments 27
5. Tax Revenue 50
6. Non-tax Revenue 15

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S. No. Content Rs (in crores)
1. Revenue Expenditure 100
2. Capital Receipts 40
3. Net Borrowings 38
4. Net Interest Payments 27
5. Tax Revenue 50
6. Non-tax Revenue 15

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National Income = Rs 1,000

Marginal Propensity to Save = 0.20

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