Pls answer Q no 2....
Dear student,
An annual financial statement showing estimated expected revenue and expenditure during a fiscal year is a Government Budget.
With the help of the budgetary policy, Government aims to allocate resources considering the economic and social priorities of an economy.
Generally, private enterprises are interested in production of those goods which are profitable but might not promote social welfare. Production of such harmful goods is discouraged through heavy taxation. On the other hand production of socially desirable goods is encouraged by reducing taxes or providing subsidies.
Government reduces the inequality in the distribution of income and wealth by imposing taxes on the rich and giving subsidies to the poor.
Expenditure on special anti poverty and employment schemes will be increased to bring people above the poverty line.
Government should directly undertake production of goods which are not appealing to private enterprises.
Regards
An annual financial statement showing estimated expected revenue and expenditure during a fiscal year is a Government Budget.
With the help of the budgetary policy, Government aims to allocate resources considering the economic and social priorities of an economy.
Generally, private enterprises are interested in production of those goods which are profitable but might not promote social welfare. Production of such harmful goods is discouraged through heavy taxation. On the other hand production of socially desirable goods is encouraged by reducing taxes or providing subsidies.
Government reduces the inequality in the distribution of income and wealth by imposing taxes on the rich and giving subsidies to the poor.
Expenditure on special anti poverty and employment schemes will be increased to bring people above the poverty line.
Government should directly undertake production of goods which are not appealing to private enterprises.
Regards