Public expenditure and national income in India

Public expenditure is one of the important instruments of fiscal policy to influence the process of economic growth. Public expenditure is increasing in almost all the developing countries. There are many reasons why public expenditure is increasing. Increase in welfare activities, increase in defence expenditure, increase in population, planning, increase in public investment, increase in Research and Development, increase in administrative expenditure are some important factors causing the increase in public expenditure. The general expectation is that public expenditure when used for productive purpose will increase the production, national income and economic growth.