Question

2 economics economic growth as an objective of government budget zigya

Answer 1

Economic growth implies increasing capacity of the economy to produce more goods and services. Public welfare is the main guide.

Answer 2

Answer:

Objectives of a Government Budget. Briefly put, promoting rapid and balanced economic development with  equality and social justice has been the general objective of all our policies and plans. General objectives of a  government budget are as under:

(i) Economic growth. To promote rapid and balanced economic growth so as to improve living standard of  the people. Economic growth implies increasing capacity of the economy to produce more goods and  services. Public welfare is the main guide.

(ii) Reduction of Poverty and Unemployment. 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. Every Indian should be able to meet his basic needs like food,  clothing, housing along with decent health care and educational facilities.

(iii) Reallocation of Resources. (A 2010, D 2011) To reallocate resources in line with social and economic  objectives, government has to allocate resources into areas where private sector is not coming, e.g.,  sanitation, water supply, rural development, education, health, etc. Moreover, government provides more  funds to productive sectors and draws away resources from some other sectors to promote balanced  economic growth of different regions