Explain any four reasons for the growth of public expenditure.

Answer: Reasons for the growth of public expenditure in India:

1. Increase in defence expenditure: Modern weapons, border tensions and security needs require large spending.
2. Rise in population: A growing population needs more education, health, housing, transport and other public services.
3. Welfare state: The government spends on social security, subsidies, poverty alleviation and employment schemes.
4. Urbanisation: Growth of cities increases spending on water supply, roads, sanitation, police, etc.
5. Economic development and infrastructure: Planned development needs heavy investment in power, irrigation, railways, communication.
6. Inflation: Rising prices increase the money cost of the same goods and services bought by the government.
7. Growth of democracy: Elections, administration and representative institutions increase expenditure.
8. Interest on public debt also adds to expenditure.