The duties and functions of state to ensure economic growth in a country

1. The Role Of Government
In Economic Development

2. Introduction
The ultimate goal of a government is to promote human welfare in the country. It
works as an agent of economic development. Governments provide the legal and
social framework, maintain the competition, provide public goods and services,
national defence, income and social welfare, correct for externalities, and stabilize
the economy.
The government also provides polices that help support the functioning of markets
and policies to correct situations when the market fails. As well as, guiding the
overall pace of economic activity, attempting to maintain steady growth, high levels
of employment, and price stability. By applying the fiscal policy which adjusts
spending and tax rates or monetary policy which manage the money supply and
control the use of credit, it can slow down or speed up the economy's rate of
growth in the process, affecting the level of prices and employment to increase or
decrease.

3. Functions Of State
i) Defensive Function
This primary function of state includes defence from external aggression and
maintenance of law and order, as these two are essential for economic devlpt.
ii) Administrative Function
Setting up of administrative structure and agencies for administering and
controlling the different departments in the country.
iii) To Provide Social Security
Insurance against accident, assistance to poor, the sick and the unemployed.
Promotion of natural and human resources by providing education, medical aid,
housing, library, public parks, sports grounds, museums.
iv) Economic Functions
-Assess, Explore and make Optimum utilisation of natural resources
-Ensure growth by maintaining economic stability
-Reduce economic disparities by minimising the gap between rich and poor and
providing socio economic justice
- Increasing the economic growth by arranging necessary raw material, machinery
and foreign assistance & making and executing economic plans acc.to these.

4. How the State Accelerates Economic Growth?
i)Ensuring Economic stability and full employment
State intervention is a necessity in developed countries which have free market
economy. In underdeveloped nations it is achieved by dealing with poverty
and unemployment and attaining higher living standards.
ii) Comprehensive Planning
Investing through a comprehensive state economic planning, the circle of
underdeveloped equilibrium can be broken and economic forces can be
checked.
iii) Control Over Market Forces
Through it a high rate of investment and economic development can be
achieved. The state interferes in the operation of economic forces within the
system to check the structural disequilibria.
iv) Provision of Social and Economic Overheads
As there is no immediate return on capital the private enterprises don’t like to
invest in basic services like railways, road transport, telecommunication,
electricity, ports, harbours, bridges, schools, technical institutions, etc. Hence it
the responsibility of state to invest in these social and economic overheads and
promote the rapid economic development in the country.

5. v) Agricultural Development
It is the duty of the state to undertake programmes for land reforms,
productivity movement, consolidation of holdings, electrification, minor
irrigation programmes and frame such a national agricultural policy that may
ensure the farmers fair prices for their crops in our own markets and abroad. It
is must for state as in countries like India 68% people depend on agriculture
and it contributes 37% to its national income.
vi) Industrial Development
The state is supposed to get its natural resources surveyed, frame out a proper
policy for their exploitation and development and also set up industries so as to
utilise them in the most profitable manner. Also make a national monetary and
fiscal policy to regulate and control private as well as public enterprises and
stimulate and direct them for industrialisation of the country.
vii) The Entrepreneurial Functions
The state has to undertake the functions of planning, programming and
entrepreneurship in underdeveloped countries. Reduce indivisibilities and
discontinuities in the economy, overcome diseconomies of scale, have an impact
of values, and offset certain other forces that arise to depress the economic
development of the country.

6. Thank You
Presented By-
Rima
Doot