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Elaborate 'economic growth ' as objective of government budget . |
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Answer» Solution :A SUSTAINABLE increasein real GDP signifies ECONOMIC growth . It happens when there is an increase in volume of goods and services produced in an economy . Government budget can be an effective tool to ensure economic growth in the country . Government makes various policies an d provisions through its budgetary policy to stimulate savings and INVESTMENTS in an economy . This is done by providing tax rebates and other INCENTIVES for productive ventures . Government spends on basic services and facilities to have a strong infrastructural base of the economy e.g., government increases its expenditure on HEALTH , education, housing , transport etc . so that level of production rises in private sector and public sector both . Government ensures that while planning its expenditure and revenue policy , financial discipline is maintained under situations of inflation and deflation in the country . |
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