Explain the ' allocation of resources ' objective of a government budget ? (give points )
'Allocation of resources' can be explained as an objective of government budget as follows.
1) Government aims to allocate resources to maintain a balance between maxisation of welfare as well as profits.
2) Private sector of economy usually ignores social welfare. Government budget allows the government to intervene in the economy so as to increase social welfare.
3) For example, government levies taxes on socially harmful goods such as tobacco, cigarettes etc and provides subsidies on essential commodities such as LPG, food grains etc.
1) Government aims to allocate resources to maintain a balance between maxisation of welfare as well as profits.
2) Private sector of economy usually ignores social welfare. Government budget allows the government to intervene in the economy so as to increase social welfare.
3) For example, government levies taxes on socially harmful goods such as tobacco, cigarettes etc and provides subsidies on essential commodities such as LPG, food grains etc.