What Is Opportunity Cost?

For every rupee that the government earns and then spends, the cost to the society is nearly three. You would want the government to spend money on areas where the benefit of government spending is more thanRupees 3. So it's a loss making investment. And also, as you said, there's an opportunity cost to it. The point for everything, there is an opportunity cause, right? If you are spending more money here, you are losing out on somlings,. which might be the policy priity of the government.