REASONS FOR INCREASE

IN PUBLIC EXPENDITURE
OF INDIAN GOVERNMENT
• 1) Provision of public utility services
• 2) Increase in population
• 3) Defence of the country
• 4) Intrest payment due to public debt
• 5) Development of backward areas
• 6) Urbanization
• 7) Natural disaster
• 7) Rise in prices
• 8) Long gestation period of the project
• 9) Industrial development
• 10) Development of agriculture
• 11) Development of infrastructure
• 12) Social welfare programs
• 13) Provision of employment opportunities
• 14) Providing subsidies and tax Incentives
• 15) Environmental sustainability
• 16) Increase in functions and responsibilities of government
• 17) wasteful expenditures on unproductive activities
• 18) Rural areas Development
• 19) Technological advancements
• 20) Entrepreneurial development programs
• 21) Human resource development
• 22) Capital formation
• 23) Availability of consumer goods
• 24) Law and order maintenance
• 25) Maintenance of international relations
• 26) Promotion of foreign trade
• 27) Research and innovations
• 28)