With reference to the methods of government expenditure, consider the following statements: 1. Progressive expenditure refers to increasing government spending with rising development needs and sectoral demands. 2. Most economies adopt proportional expenditure patterns to ensure neutrality across all income groups. Which of the statements given above is/are correct? |ForumIAS

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: A

Notes:

Explanation:

Progressive expenditure aligns with rising needs as a country develops — more spending is required on health, education, infrastructure, etc.
Progressive expenditure is preferred and is commonly adopted along with progressive taxation. Proportional expenditure is not cited as the dominant model.

Source- TMH Indian Economy by Ramesh Singh

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