How has economic reform affected developmental and welfare expenditures?

Limited funds for developmental and welfare expenditures

The correct answer is Option 2: Limited funds for developmental and welfare expenditures

Economic reforms, with their focus on limiting public expenditure, have had a negative impact on developmental and welfare expenditures. Tax reductions, reduced customs duties, and tax incentives for foreign investors have resulted in decreased revenue for the government, limiting the funds available for developmental and welfare initiatives.