What are the objectives of government budget?
Asked by Topperlearning User | 19th Apr, 2016, 09:21: AM
Objectives of the government budget are
- Redistribution of income and wealth: Government through fiscal tools of taxation transfer payment brings fair distribution of income.
- Reallocation of resources: Through the budgetary policy, the government can reallocate resources so that social and economic objectives can be met.
- Economic growth: Growth rate of a country depends on the rate of savings and investment.
- Generation of employment: Government needs to promote labour intensive technology, public work programmes to undertake employment specific projects.
- Economic stability: Government tries to maintain price and employment stability. It stimulates inducement and to invest and increase the rate of growth and development.
- Management of public enterprises: Public sector enterprises are encouraged in area of natural monopolies.
Answered by | 19th Apr, 2016, 11:21: AM
- What are public goods and private goods?
- What are the types of budget?
- Define revenue budget.
- Define capital budget.
- Define tax.
- Mention any two examples of each item. i. Non-tax revenue ii. Direct tax
- What is plan and non-plan expenditure?
- Subsidies are treated as revenue expenditure. Give reason.
- What is fiscal discipline?
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