There is an unlimited demand from humans but there are only limited resources.
Most of the resources on Earth are practically unlimited even if limited in theory. Humans only ever tried to extract oil and minerals from the outermost 1% of Earth's crust, why? Not because they couldn't. They are already providing the right supply for the current demand. If demand increases, they'll dig deeper.
The concept of marginal utility which was mentioned here before is also important. "Unlimited demand" in your terms is not true, it's an ever-decreasing demand as one's needs get filled.
Theoretically, this is correct and limited; you cannot argue with it. Resources are limited, even if you continue to explore, you will eventually find their limits. Resources do not grow, but they decrease as they are used. The larger the human population, the greater the demand will be. That is how it works. Some people are already aware that resources are limited, which is why so many people are researching renewable energy, looking for alternatives to existing resources. It's not because they are greedy, but because they know that what is on earth will definitely run out if it is continuously exploited.
The amazing part is that, the government officials never care much about this but always come up with fail projects to lift this matter.
Because the ones elected in power are not intelligent enough. Not only that but the ones in positions are also corrupt. So they purposely come up with failed or ineffective projects to fund their own pockets instead. Corruption really is the poison of a country
They are not creating failed projects, but rather successful projects, only for themselves, for their own interests and those of their groups. We often see this in many corrupt countries, where they do not care about the general public or communities that have no interest in them. Most people who hold office today in corrupt countries do so to maintain, strengthen, and expand their personal profits. We know that entrepreneurs can be pressured by the government, but if entrepreneurs enter the government, they will easily set regulations that only benefit themselves.
Meanwhile, the economy of the general public is not a major concern. Today's leaders are saving their own stomachs and do not care about the stomachs of the lower classes.