IMO E
justifies is singular and is needed for government (singular). therefore eliminate C & D
their(plural) actions doesn't go with government (singular) therefore eliminate A & B
Hope it helps

following errors exist:
(i) Such like is not idiomatic
instead of such like, such as should be used
(ii) agreement issue:
- government is singular will take singular antecedent : their is wrong
and singular subject takes singular verb so justifies is correct verb
(iii) in option B : that should be used after "stating"

IMHO E, free from all the errors described above

The "government," the singular subject of the underlined clause, requires the singular verb "justifies"
and the singular pronoun "its." Additionally, since "medical care and schooling" are examples of
services, they should be delineated by "such as" rather than "such like."

(A) This choice is incorrect as it repeats the original sentence.

(B) This choice incorrectly uses the plural pronoun "justifies" to refer to government. Additionally, it is
redundant to state "too costly and expensive."

(C) The plural verb "justify" and the plural pronoun "their" incorrectly refer to the singular
"government." Also, basic services "like" medical care and schooling is unidiomatic.

(D) The plural verb "justify" incorrectly refers to the singular "government." Additionally, "too costly
and expensive" is redundant, and medical care and schooling are two services rather than "a service."

(E) CORRECT. The singular subject "government" is properly accompanied by the singular verb
"justifies" and the singular pronoun "its." Furthermore, the phrase "such basic services as medical care and schooling" is idiomatically correct.