Which two ways are handy for overall development of a state?​

1. Promoting capital formation: Capital formation is a fundamental requirement for economic  development. Private savings are very low in the underdeveloped countries in view of the low  income of the people. Therefore, there is a need for generation of savings by the government.  Developing countries have to depend primarily on government to mobilize domestic resources  during the early stages of economic development. The government has a major role to play in  promoting capital formation.

2. Development of Economic Infrastructure: Provision of economic infrastructure is mostly the  responsibility of the government. Key economic services, called infrastructure, like railways, road transport, communication network, roads, bridges, irrigation works, gas, electricity, etc. are  very essential for economic development. The absence of infrastructure can reduce economic  development.  

Explanation:

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