ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -For financial year 2021, the proportion of infrastructure investments to the gross domestic product (GDP) was estimated to be nearly four percent.

Detailed explanation-2: -Government purchases range from spending on infrastructure projects and paying civil service and public service employees, to buying office software and equipment and maintaining public buildings. Transfer payments, which do not involve purchases, are not included in this category.

Detailed explanation-3: -For 2023-24, at Rs 8.28 lakh crore ($100.77 billion), it is 18% of total government spending.

Detailed explanation-4: -Historically, government has assumed most of the burden, particularly in emerging markets. But the scale of infrastructure required makes attracting private investment critical. To do so, projects in difficult-to-finance areas such as roads and water should take their cue from telecommunications.