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 Causes of increase in public expenditure in recent years

Causes of increase in public expenditure in recent years are given below:

  1. Increase of population

The population all over the world is increased more than before. The government needs to expense a lot of money to meet the primary needs of this increasing population

  1. Increase of protection cost

In recent years, public expenditure is increased due to an increase in protection expenditure.  Every country has built a security team for its freedom and sovereignty. To make a strong team, preparing them for war, buying arms the government expense a lot in this sector.

  1. Ensure internal peace and discipline

The historical duty of the government is to ensure internal peace and discipline within the country. It is the major duty of the government to ensure peace and discipline and security of the people. The security team and police are playing this role on behalf of the government. For this, the government needs to expense a lot of money to keep the security team and police for the people.

  1. Increase well-fare expenditure

Ensure social welfare is another objective of government expenditure. All countries in the world do welfare activities for the people in a society because people are the center of development. Besides, to ensure these social welfare activities by establishing a school, college, hospital, the government needs to expense a huge amount of money.

  1. Increase official cost

The other objective of public expenditure is to operate official expenses. The government needs to appoint many employees to operate the official activities of the country. Besides, the government needs to pay a huge sum of salaries for these employees. For these objectives, the government needs to expense a lot.

  1. Reduce income disparity

The fair distribution of income and asset needs to ensure the welfare of modern society. The unequal distribution of income and assets can create discrimination between poor and rich.  The government needs to take various steps to remove this discrimination. The government can collect money from asset tax, income tax from rich people, and distribution this among poor.

  1. Increase public project

The public project is increasing in this modern time by doing various economic activities .etc

  1. Control business cycle

The direct participation of the government can control the business cycle. the poor condition of the business cycle can reduce employment, income, and production.. in this time, the government increased its expenditure and the crisis of the business cycle.

  1. Urbanization

Due to industrial development and development of society is making urbanization. The maximum number of people are coming to urban areas for a better life. The government needs to expense a lot for making more roads, water and electricity supply, facilities of recreation, etc for this increasing people.

  1. Increase product price c

The price of goods is increasing day by day than before in all over the world. The government needs to expense more like general people for buying goods. A s a result, the public expenditure is increasing gradually.

  1. Social security

Another major objective of government expenditure is to ensure social security in society. The government of Developed or developing countries is an expense a lot of money for ensuring social security.

  1. Prevent Natural disaster :

The government needs to expense a huge amount of money to control natural disasters.  the government expense a lot of money at the time cyclone, earthquake, tsunami, epidemic, etc take place s in a country.

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