Explain two ways by which public expenditure promotes economic development.
Public expenditure promotes the economic development of a nation as follows:
- Public expenditure on infrastructural development improves the production efficiency of industries and increases employment opportunities.
- It encourages private enterprises by initialising state-owned financial and banking institutions to provide cheap credits.
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Solution Explain Two Ways by Which Public Expenditure Promotes Economic Development. Concept: Concept for Public Expenditure.