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Primary Deficit & Revenue Deficit

"Policies of ...

Question

"Policies of surplus budget during inflation" is a part of which objective of government budget?

A

Economic Growth

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B

Economic Stability

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C

Reducing Regional Disparities

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D

Reallocation of Resources

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Solution

The correct option is B Economic Stability
Economic stability can be achieved by correcting the situations of excess demand and deficient demand. Thus, policies of surplus budget during inflation is a part of the "economic stability" objective of government budget.

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Q. State with reasons whether you agree or disagree with the following statements.

1. Capital budget consists of revenue receipts and revenue expenditure.
2. When government expenditure is greater than government revenue, it is called Surplus Budget.
3. During the period of inflation, Surplus Budget is advisable.

Q. How can surplus budget be used during inflation?

Q. Short answer type questions:
Explain the 'allocation of resources' objective of government budget.

Q. Short answer type questions:
Elaborate 'Economic Growth' as an objective of government budget.

Q. Explain the following objectives of government budget.
(a) Allocation of resources
(b) Reducing income inequalities.

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