We now consider policies available to the government to stimulate economic growth. Any policy which stimulates the rate of growth of capital stock(i.e investment) also assists growth. Financial assistance for investment usually takes the form of cash grants and tax relief on investment expenditure. All such measures are designed to reduce the cost of investment. The government can have a more direct influence on investment in the public sector via the capital expenditure programmes of nationalised industries and by the provision of necessary infrastructure such as road networks. electrification of railways. etc. Turning to the second source(i.e. technology). the government can assist the growth of knowledge by the provision of educational facilities. retraining schemes and assisting research expenditure. Nevertheless the role of government in promoting economic growth is the subject of controversy. Some people argue that the best action the government can take is to reduce its intervention in the economy. Cutting back government expenditure would. they argue.get the government off the backs of the people and allow private enterprise to function without hindrance. Reduction of government expenditure would permit reduction of direct taxation. thus increasing rewards and providing greater incentives of undertake risk. Broadly speaking these types of argument are put forward by those on the right of the political spectrum. In their view the role of government is to creale a stable economic environment in which private enterprise can act.