Question

Mention four causes for increasing public expenditure in modern times.

Answer 1

1. In the modern times, the states are welfare states. As welfare state, it has to undertake so many welfare functions like, education, health, etc.
2. The spread of urbanisation is another factor for the growth of public expenditures.
3. In developing countries like India, the government has to spend huge amount on the rural development.
4. The growth of democracy and socialism everywhere has led to increase in public expenditure.