Advertisement

Explain Two Ways by Which Public Expenditure Promotes Economic Development. - Economics

Question

Explain two ways by which public expenditure promotes economic development.

Solution

Public expenditure promotes the economic development of a nation as follows:

  1. Public expenditure on infrastructural development improves the production efficiency of industries and increases employment opportunities.
  2. It encourages private enterprises by initialising state-owned financial and banking institutions to provide cheap credits.
  Is there an error in this question or solution?
Advertisement

APPEARS IN

 2015-2016 (March) (with solutions)
Question 6.1 | 5.00 marks
Advertisement
Explain Two Ways by Which Public Expenditure Promotes Economic Development. Concept: Concept for Public Expenditure.
Advertisement
Share
Notifications

View all notifications
Login
Create free account


      Forgot password?
View in app×