Elaborate ' Economic Growth ' as an objective of government budget?
Dear Student
When the Government formulates the budget it keeps in mind many objectives . One of the essential objective is to increase the growth rate . The growth rate of a country depends on rate of saving and investment . So in order to raise the rate of savings and investment , budgetary policy aims to mobilise sufficient resources for investment in the public sector. To raise the overall savings and investment alteration of public expenditure , tax policies etc are the tools implemented by the government . More savings lead to more investment which results in more revenue generation .
Regards .
When the Government formulates the budget it keeps in mind many objectives . One of the essential objective is to increase the growth rate . The growth rate of a country depends on rate of saving and investment . So in order to raise the rate of savings and investment , budgetary policy aims to mobilise sufficient resources for investment in the public sector. To raise the overall savings and investment alteration of public expenditure , tax policies etc are the tools implemented by the government . More savings lead to more investment which results in more revenue generation .
Regards .