A modern day state performs both compulsory as well as optional functions. The compulsory functions which it performs are:

(a) Maintenance of law and order.

(b) Settlement of mutual disputes.

(c) Safeguarding the state from external aggression.

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The modern day state performs a number of optional functions, which are also known as welfare functions. They are:

(a) Regulation of trade and industry, including control of coinage and cur­rency, fixation of weights and measures, issuing of trade licenses, regula­tion of imports and exports, fixation of working hours, etc.

(b) Making provision for setting up of schools, colleges and universities.

(c) Maintenance of hospitals, checking the spread of infectious diseases, con­trolling epidemics, undertaking vaccination programmes, etc.

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(d) Maintenance of public utility works like posts, telegraphs, railways, roads, public libraries, parks, etc.

(e) Promotion of agriculture on scientific lines, and making provision for distribution of good seeds, irrigation facilities and credit availability.

(f) Making provision for social security like old age pension, unemployment allowance relief to the sick, compensation in case of accident, etc.

(g) Making provision for recreational facilities like museums, parks, cinema nails, etc.