Question

Explain how the Government’s investment in 5G infrastructure will affect its budget in the short run and in the long run when businesses’ profits grow.

Answer 1

5G Infrastructure- Investment
The government investment in 5G infrastructure could make them to suffer a short-term high expenditure which can affect the functions and allocations of various activities. The technological expenditure can surely cost a short term deficit of funds for other activities. For a government which regularly finds funds from borrowings can have notable impacts on its expenditure. This infrastructural investment on network even though does not give rapid revenue or direct effect from the implication, the economy may witness the effect in the coming future.
The investment costs including the new transmission equipments line towers, antenna etc. which is expensive since to deal with a transformation to advanced technologies. Also, the need of knowledge in the new development could expectations in the risk increases costs. The network service provider may also face problems regarding the change in the technology of communication and network. An improper implementation could hesitate them follow and opt for the changes.  
The benefits are of a long term basis. The change in infrastructure could increase investments in the sector and increasing competition. The ability of the sector to increase its capabilities through infrastructural investment from the part of government would also increases the efficiency of various public and private sectors in the economy through increasing efficiency in communications. Sectors like banking and trading can have positive impacts for a faster experience in the same to attain better and effective performance and competition. An economy which is slowly evolving to a complete mode of online transactions and operations would make impacts by the infrastructural advancements.