THE SOCIAL TIME PREFERENCE DISCOUNT RATE IN COST BENEFIT ANALYSIS' CHOOSING between alternative time-streams of social benefits and costs is one of the most difficult and most important problems in the evaluation of public investment projects. The attention devoted to this subject in Intertemporal Rate of Substitution. The intertemporal rate of substitution is a concept in finance that helps us to link the long-term growth rate of the economy, investors’ expectations of future consumption, and interest rate to each other. the reason these are interlinked is because investors trade-off between real consumption today and real consumption in the future. Marginal utility is used to measure how satisfying or valuable something is to a consumer. To calculate the marginal utility of something, just divide the change in total utility by the change in the number of goods consumed. In other words, divide the difference in total utility by the difference in units to find marginal utility.

Unlike the American political system and the British political system which essentially have existed in their current form for centuries, the Indian political system is a much more recent construct dating from India's independence from Britain in 1947.

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