wiz-icon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

Briefly explain the importance of public expenditure in the industrial development of developing countries.

Open in App
Solution

The importance of public expenditure in the industrial development is in following manner-
(i) By building economic overheads, e.g., roads, railways, irrigation, power, etc. and undertaking of social overheads such as hospitals, schools, etc. productive capacity of an economy is increased.
(ii) Public expenditure is helpful in promoting and developing the basic and key industries such as capital goods industries.


flag
Suggest Corrections
thumbs-up
0
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Tools of Fiscal Policy
ECONOMICS
Watch in App
Join BYJU'S Learning Program
CrossIcon