Role of Government in Development Policies
1. Defence: This is
an essential security function to protect our nation from our enemies. The
Union government is responsible for creating and maintaining defence forces.
2. Foreign policy: In
today’s world, we need to maintain friendly relationships with all the other
countries in the world. We should also maintain cordial economic relationships
through exports and imports, sending and receiving investments and labour. This
service is also provided by the Union government.
3. Conduct of periodic elections:
India is a democratic country. We elect our
representatives to Parliament and state assemblies. Similarly the state
governments conduct elections to local bodies within the state.
4. Law and order: Both the
Union and state governments enact
numerous laws to protect our rights, properties and to regulate our economy and
society. To settle disputes, the Union government has a vibrant judicial
system. State governments take the responsibility for administering the police
force in respective states.
5. Public administration and
provision of public goods: The government generally administers the economy and society through various departments,
for example, revenue department, schools, hospitals, rural development and
urban development. The local governments provide public goods like local roads,
drainage, drinking water and waste collection and disposal.
of income and poverty alleviation: Governments collect various taxes to finance the various
activities mentioned earlier. The taxes are collected in a way that the
high-income people can bring in more tax revenue to the government than the
poor. The governments also spend money such that the poor are given some basic
necessities of life like food, shelter, clothing education, health care and
monthly income to the very poor persons. Thus collecting taxes and spending for
the poor to reduce poverty.
7. Regulate the economy: The Union government, through the Reserve Bank
of India, controls money supply and controls the interest rate, inflation and
foreign exchange rate. The main objective is to remove too much of fluctuation
in these rates. The Union Government also controls the economy through various
other agencies such as Securities Exchange Board of India and Competition
Commission of India. All the governments in India run public sector enterprises
to provide important goods and services at affordable rates to the people.