please provide me the examples of objectives of government budget( in simple and easy language)
1. Reallocation of resources
2.redistibution of activities
3.management of public enterprise
4.stablizing economic activities
5.economic growth
Dear student,
The examples of objectives of government budget are:
1) Reallocation of resources: The government aims to allocate resources to maintain a balance between the maximization of welfare and profits. For example, The government encourages small industries like "Khadi" to grow by giving them loans on a lesser interest rate.
2) Redistribution of income: The government levies taxes on socially harmful goods such as tobacco, cigarettes, etc and provides subsidies on essential commodities such as LPG, food grains, etc.
3) Management of public enterprise: A large number of public sector industries are established and managed for the social welfare of the public. For example, Railways, Defence, etc. They are monopolised for public welfare.
4) Stabilizing economic activities: The government controls fluctuation in general price levels through taxes and subsidies. For example, when there is inflation (continuous rise in price), the government can reduce its expenditure, and when there is depression, the government grants subsidies to encourage people to spend more.
5) Economic growth: The growth rate of a country depends on the rate of investment and saving. 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,
The examples of objectives of government budget are:
1) Reallocation of resources: The government aims to allocate resources to maintain a balance between the maximization of welfare and profits. For example, The government encourages small industries like "Khadi" to grow by giving them loans on a lesser interest rate.
2) Redistribution of income: The government levies taxes on socially harmful goods such as tobacco, cigarettes, etc and provides subsidies on essential commodities such as LPG, food grains, etc.
3) Management of public enterprise: A large number of public sector industries are established and managed for the social welfare of the public. For example, Railways, Defence, etc. They are monopolised for public welfare.
4) Stabilizing economic activities: The government controls fluctuation in general price levels through taxes and subsidies. For example, when there is inflation (continuous rise in price), the government can reduce its expenditure, and when there is depression, the government grants subsidies to encourage people to spend more.
5) Economic growth: The growth rate of a country depends on the rate of investment and saving. 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,