question_answer

'Mission Develop India' is the plan of government to create basic infrastructure. It comprises of projects on irrigation, roads, housing, water supply and telecommunication connectivity. Above stated example is a government expenditure or government revenue. Elaborate it. Also, state the impact of this programme on    rural growth.                                                                

Answer:

 It is an example of government expenditure, the principle component of fiscal policy. Such expenditure of government on construction of roads, education, defence of the country are made by the government correct the situation of excess demand or deficient demand in the economy.                        When there is excess demand, government expenditure is reduced and when there is a deficient demand government expenditure is increased. It is a flagship programme by the government of India. This project is an investment in rural infrastructure which will unlock the growth potential of rural India.