Causes For The Rising Public Expenditure

1.Nation of the Welfare State- Welfare Functions –Social Insurance, Unemployment Benefits, Reduction in Inequalities, Provision of Subsidies, Subsidized Housing, Education, Medical Facilities etc. Maintenance of Law and Order- Social Goods – Transport, Communication, Education, Medical Facilities.

2. Defence Expenditure – Uncertain and Insecured International Political Situation- War Equipments, Maintenance and Growth of Army, Navy and Airforce,Pensions to Retired War Personnels, Interest on War Loans, Military Research, Rehabilitation Cost etc.3. Growth of Population – 1951 -36 Crore 2011 – 121 Crore Food, Clothing, Housing, Unemployment, Sanitation, Health, Family Planning etc.- Govt.Programmes.

4. Rise in National Income – Demand for Public Goods – Education, Communication, Transportation, Health Care Increase. 5. Urbanization – Urban Population 1951 – 17% Today - 30% Courts, Police, Transport, Road, Railway, Schools and Colleges, Water, Electricity, Distribution of Essential Goods, Public Parks, Libraries etc.6. Growth of Transport and Communication -

Expansion of Trade and Commerce – Construction of Railways, Roadways, National Highways, Bridges, Canals etc.7. Rural Development – Community Development Projects – NREGA, IRDP, Food for Work Programme.8. Health and Education – Grants – Schools and Colleges – Quality Education Hospital- Better Medical Facilities.9. Increasing State Intervention – Administrative Expenditure – Trade, Banking,

Transport, Commerce, Insurance, Regulation of Public Services etc.10. Agricultural Development – Providing – Seeds, Fertilizers, Irrigation Facilities, Modern Implements, Cheap Loans Promote – Agricultural Research and Other.11. Development of Industry – Facilities, Subsidies to Exporters, Loans at Cheap Rate of Interest.12. Inflation – Salaries and D.A.13. Development Programmes -

Bharat Nirman, Sarva Shiksha Abhiyan.14. Poverty Alleviation and Employment Generation – National Rural Employment Guarantee Program, Integrated Rural Development Program etc.15. Economic Planning –16. Democracy – Elections – Political Representatives.