Overview

In the traditional economy, the Role of Government was limited to the maintenance of law and order and government interference in the economy was considered unnecessary. But with the passage of time, the interference of the Government in the economy has become inevitable because in modern times apart from its traditional functions of defense and maintenance of law & order, a modern government undertakes welfare and developmental activities and makes provision for public goods to satisfy collective needs of the people. It has also to pay for its own administration and has the responsibility of protecting the citizens, promoting their economic and social welfare, etc.

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