Explain the reasons for the growth in public expenditure in India.

Answer: Public expenditure is the expenditure of central, state and local governments. In India it has grown steadily for the following reasons:

1. Defence: Expenditure on defence and modernisation of the armed forces has risen because of security threats.
2. Population growth: A growing population requires more spending on education, health, housing, water supply and other civic services.
3. Welfare state: As a welfare state, the government spends on poverty alleviation, employment schemes, subsidies, pensions and social security.
4. Urbanisation: Rapid growth of cities needs more expenditure on roads, transport, sanitation, electricity and law and order.
5. Price rise (inflation): Rising prices increase the cost of goods and services bought by the government.
6. Economic development and infrastructure: Spending on roads, railways, ports, power, irrigation and communication has increased.
7. Public debt: Repayment of loans and interest payments on domestic and foreign debt have grown.
8. Expansion of administration: Growth of government departments and the salaries, allowances and pensions of employees raise expenditure.
9. Democratic and social programmes: Elections, rural development, agricultural support and natural disaster relief need large expenditure.
10. Development of agriculture and industry: Subsidies, credit support and promotion schemes add to expenditure.

Thus public expenditure in India keeps growing because of both developmental and non-developmental needs.