What is the government budget? Why is it needed?
What is the government budget? Why is it needed?
A government budget is a statement showing estimated receipts and estimated expenditure under various heads during a fiscal year.
Objectives of the Budget:
(1) Increase in government activities requires large resources to be mobilised to meet the expenditures required which is not possible without a budget.
(2) It helps in solving various problems like problems of inflation, a deficit in the balance of payments, to name a few.
(3) It is required to reduce the inequalities in the distribution of income and wealth. The taxes and various other duties help generate revenue which can be used for the welfare of weaker sections.
(4) It is also necessary to know the government activities. It is the reviewer of the performance of government.
A government budget is a statement showing estimated receipts and estimated expenditure under various heads during a fiscal year.
Objectives of the Budget:
(1) Increase in government activities requires large resources to be mobilised to meet the expenditures required which is not possible without a budget.
(2) It helps in solving various problems like problems of inflation, a deficit in the balance of payments, to name a few.
(3) It is required to reduce the inequalities in the distribution of income and wealth. The taxes and various other duties help generate revenue which can be used for the welfare of weaker sections.
(4) It is also necessary to know the government activities. It is the reviewer of the performance of government.
