what is the importance of government budget?
importance of govt budget are :
mportance of govt budget are :
(i)Economic growth:To promote rapid economic growth so as to improve living standards of the people.(ii)Reduction of poverty and employment:To eradicate mass poverty and unemployment by creating maximum employment opportunities and providing maximum social benefits to the poor. Social welfare is the single most objective of the government.(iii)Reallocation of Resources:To reallocate resources with socialand economic objectives.(iv)Reduction of inequalities:To reduce inequalities of income andwealth through levying taxes and granting subsidies. More emphasis is laid on equitable distribution of wealth and income. Economic progress is not a sufficient goal.There shouldbe equitable distribution of wealth in the economy.(v)Price stability:To maintain price stability and to correct business cycles involving depression characterised by falling output andprices.(vi)Management of public enterprises:To manage public enterprises which are of the nature of monopolies like railways, electricity etc.Budget plays a very important role because it is a framework on which government applies the policies related to revenue and expenditure.It helps the economy to work in a efficient way and to identifies the weakness.