Reasons for the growth of public expenditure in India:
(a) Development Programmes : Most of the underdeveloped countries have initiated various programmes of economic development i.e., provision of infrastructure of the economy such as transport, communication power etc. This has led to growth of public expenditure.
(b) Growing trend of Urbanisation : With the spread of urbanization, public expenditure has increased in modern times. Urbanization has led to increase in Government expenditures on civil administration, education, public health, water supply, parks etc.
(c) Rise in Price-level : As a result of the rise in the price-level, the public expenditure has gone up everywhere. The reason is that like the private individuals the Government also has to buy goods and services from the market at higher prices.