Question

explain the objectives of Allocation of resources in government budget​

Answer 1

Answer:

Government aims to allocate resources to maintain a balance between maxisation of welfare as well as profits. 2) Private sector of economy usually ignores social welfare. Government budget allows the government to intervene in the economy so as to increase social welfare

Answer 2

Answer:

The private sector is interested in industries that maximise profits, while the government aims at welfare maximisation. The government through its budgetary policy aims to reallocate the resources according to economic and social objectives. This is done through giving subsidies, tax concessions etc to encourage investment in socially important areas. The government can also discourage production of harmful goods like liquor etc through heavy tax duties.

Explanation:

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