Expansion in the sphere of state activity has meant a huge increase in its functions. These functions have been classified as compulsory and optional.
Compulsory functions include maintenance of law and order, administrative of justice, protection of property, and determination of contractual rights, ensuring civil and political rights, provision of external security and establishment of external relations.
Optional functions involve all matters of economic regulation affecting agriculture, banking, industry, markets, employment, wage, insurance planning etc. These also include wide ranging social and cultural intervention including social security provisions, educational activities and promotion c art and science. However, such a classification of functions need not be considered as rigid and unalterable.