Two causes for increase in public expenditure in recent times :
(i) Developmental Work: Modern state has also taken up developmental work in addition to their primary functions of administration and defense and others benefits such as old age pension, free medical aid, free education etc. to improve the social-economic welfare of the country.
(ii) Increase in Population : The government has to incur great expenditure to meet the requirements of increasing population. In fact, the public expenditure increases in the same ratio in which the population increases.