Answer:
The reasons why recurrent expenditure decrease leads to capital expenditure increase :
1. Long term growth :
The decrease in current expenditure leads to decrease in current income, a country cannot survive for long in constant decrease thus future prospect growth is importation which leads to increased capital expenditure.
2. Budget :
If the government of the country decreases their proportion of recurrent expenditures from the budget they have to increase the capital expenditures otherwise all the excess money will go into vain.
