What is the main reason of decreasing public expenditure during the last decade?

Solution

During the last decade after adopting the new economic policy public expenditure is decreasing. Due to the wave of privatisation the government is not investing in public sector enterprises. The government has realised that they do not have the resources enough to invest in the public enterprises. So the private sector is being encouraged and allowed to operate in the areas reserved exclusively for the public sector. Several public sector enterprises have been sold during the period 1991-2005. Disinvestment policy is in process. That is why the public expenditure is decreasing.

Some More Questions From Liberalisation, Privatisation And Globalisation : An Appraisal Chapter

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Liberalisation, Privatisation And Globalisation : An Appraisal

What is the main reason of decreasing public expenditure during the last decade?

Some More Questions From Liberalisation, Privatisation And Globalisation : An Appraisal Chapter

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