Ways in which the government can promote economic development are :
1. Increase in Public Expenditure : If public expenditure increases, it will lead to an increase in money supply which will in turn increase the per capital income over a period of time.
2. Export Incentives : If exports are encouraged, the net factor income earned from abroad rises which will lead to an increase in Gross National Product (GNP).
3. Infrastructure Development : Public sector investment in the infrastructure sector like power, transport and communication, heavy industries, education, etc. paves the way for agricultural and industrial development of a country.