LAND UTILIZATION Land is a scarce resource, whose supply is fixed for all practical purposes. At the same time, the demand for land for various competing purposes is continuously increasing with the increase in human population and economic growth.Land use pattern at any given time is determined by several factors including size of human and livestock population, the demand pattern, the technology in use, the cultural traditions, the location and capability of land, institutional factors like ownership pattern and rights scale regulation. Major Types of Land Utilization in India : As in all other countries, land in India is put to various uses. The utilization of land depends upon physical factors like topography, soil and climate as well as upon human factors such as the density of population, duration of occupation of the area,land tenure and technical levels of the people.There are spatial and temporal difference in land utilization due to the continued interplay of physical and
CAUSES OF INCREASE IN PUBLIC EXPENDITURE
a) Wagner's law : The main cause of growth of public expenditure is increasing tendency for Activities of government to increase both intensively and extensively . There is increase in activities of local as well as central government.
b)Wiseman-peacock hypothesis: Public expenditure increase in jerks or step like fashion. Some social and other disturbances cause public expenditure to increase which makes the existing state revenue inadequate. Ultimately,the public expenditure and revenue get stabilised at new and high level which is called displacement effect.
c) Increasing efficiency:Modern development have tended to increase the efficiency of public authorities relatively to that of private association. The cause is that private institution are guided by profit motive whereas the aim of state is social welfare.
d)Increasing population: with the increasing population, the responsibility of state to provide public service also increases which leads to increase in govt. Expenditure.
e) Urbanisation: Urbanisation implies increase expenditure with the increase expenses on electricity,water, roads , education which further is the reason behind increase in expenditure.
f)Welfare activities:Modern states are welfare states where govt. Try to raise standard of living by undertaking number of welfare and social security measures. Provision of all these facilities requires huge public expenditure.
g)Rise in price level:With the increase in level of price , the government has to pay more for the same goods and services which it has to buy. This has contributed to raise in money expenditure of government.
h)Increase in defence expenditure:Wars and rumours of wars between countries have forced then to be ready for war. Thus,govt. Have to maintain large armies for which they have to incur heavy defence expenditure.
I) Extension of public sector:There is increase in public expenditure due to emergence and fast expansion of public sector . Today there is hardly any activity which state can't undertake and hardly any sphere which it cannot enter .
j)Private sector:The state also provide economic help to Various industries in private sector in the form of subsidies loans etc. Which incurs public expenditure.
k)Planning and economic development : Growing importance of planning has contributed to increased public expenditure. The process of economic development cannot be initiates without adopting economic planning.
l) Economic stability :A modern govt consider it as a part of its duty to check business fluctuations in the economy. Accordingly ,huge expenditure is incurred in the period of recession and depression.
m) Administration: The size,nature of public services involve specialisation. Better quality services and higher qualified administration, technicians implies higher cost if providing services. The wastage in administration which put further upward pressure on public expenditure.
n) Establishment of democracy: Modern Democratic stare has to maintain the ceremonial head of the stare and make huge expenditure on legislature at central ,state and local levels.
o) International factors: Most of the countries are members of international organizations like U.N.O , I.M.F ,World bank which implies annual subscription expenses on permanent delegates , conferences etc. Large sun are spent by govt to maintain diplomatic and consular relations with other countries.
p) Repayment of loans :Modern govt gave tendency to indulge in debt. This leads to increase in public expenditure in the form of increasing cost of debt services and Repayment of loans.
q)Rural development:In an underdeveloped country,the govt . Has also to spend more and more for Rural development. It has to undertake schemes like community development projects and other social measures.
r)Transport and communication:With the expansion of trade and commerce,the state has to provide and maintain quick and efficient Transport system. Govt has to run Transport services even at loss which calls for high expenditure for maintenance and expansion.
s)Social securities:Almost all the countries started to provide to workers and other residents social securities such as social insurance,fund schemes, pensions , maternity benefits etc. This has also caused an increase in govt. Expenditure.
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