Question

Choose the correct option.

Statement I: Public expenditure increases with an increase in population and modernisation.

Statement II: Over the years, the public expenditure of India has decreased.

• A. Both of the statements are correct.
• B. Both of the statements are incorrect.
• C. Statement I is correct, but statement II is incorrect.
• D. Statement I is incorrect, but statement II is correct.

Answer 1

The correct option is C Statement I is correct, but statement II is incorrect.

When the population of a country increases, it impacts the public expenditure. With the growing demand for public facilities, the government is bound to increase its public expenditure. In the case of India too, the public expenditure has increased over the years.