1.

How can an increase in public expenditure create more employment in the country?

Answer»

Public Expenditure increases the level of employment: Public expenditure leads to increase in the level of employment in the country; especially in the underdeveloped countries like India. 

For example, Rural Public Works Programmes have been launched to provide employment in rural areas like irrigation scheme, construction work and flood control etc. In this way through public expenditure, the government can create additional employment opportunities and increase the level of income also.



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