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Question

Which one of the following is not an objective of government budget?

A
Reallocation of resources
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B
Economic Stability
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C
Increasing regional disparities
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D
Economic Growth
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Solution

The correct option is B Increasing regional disparities
The government frames its budgetary policy with an aim of achievng a set objectives. Some of the objectives are:
1)High rate of GDP growth
2)Balanced Regional growth
3)Allocation of resources
4) Redistribution of income and wealth
5) Employment opportunities
6) Economic stability
Therefore, increasing regional disparities is not an objective of government budget.

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