Question

State two objectives of government budget.

Answer 1

1. Planned Approach to Government’s Activities: The fact that the government’s operations have grown significantly in recent years makes the budget crucial. This requires the use of substantial resources to cover the costs necessary to carry out these operations. For government operations to be carried out properly, there must be clear planning regarding the projected revenue and spending.
2. Allocation of Resources: Budgetary policy allocates resources based on economic and social considerations. The government can provide tax breaks and subsidies to encourage the private sector to produce things for the public interest. The government has the flexibility to implement different budgetary policies. The government allocates resources in the economy.