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State the importance of the Government budget. - Economics

Answer in Brief

State the importance of the Government budget.

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Importance of Budget

  • Union Budget is important because it affects people and the economy in general in a number of ways.
  • Taxes are the most interesting part of any budget. Taxes determine the fate of businesses and individuals.
  • The level of disposable income of the taxpayers depends on the tax rates presented in the budget.
  • Government expenditure on various heads such as defense, administration, infrastructure, education, and health care, etc. affects the lives of the citizens and overall economy.
  • Also, the budget is important because Governments use it as a medium for implementing economic policies in the country.
  • Budgetary actions of the Government affect the production, size, and distribution of income and utilization of human and material resources of the country
  • The scope and importance of public finance in a modern economy have undergone an immense change over the last 100 years.
Concept: Structure of Public Finance - Financial Administration
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Balbharati Economics 12th Standard HSC Maharashtra State Board
Chapter 8 Public Finance in India
Exercise | Q 5. (1) | Page 80
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