1. 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. 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.

3. 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 -

4. 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,

5. 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 -

6. 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.