Discuss any five reasons for the growth of public expenditure in India.
The growth of public expenditure
1. Public expenditure tends to increase with the expansion of administrative machinery, maximisation of social and economic welfare, providing of salary and other benefits such as old-age pension, sickness benefits, accident benefits and free education to industrial workers.
2. Public expenditure tends to increase with the huge interest payments on market borrowings.
3. Satisfying the defence needs has further increased the requirement of government revenue.
4. Prevention of monopolisation leads to large demand for government funds. Monopolies affect the economic system and concentration of economic power.