Question

The three core functions of a government budget are:

Options

• Planning, Execution and Evaluation

• Allocation, Distribution and Stabilisation

• Taxation, Expenditure and Borrowing

• Production, Consumption and Investment

Answer 1

The government budget performs three core functions: the allocation function (providing public goods), the distribution function (ensuring fair distribution of income and wealth), and the stabilisation function (managing aggregate demand to counter inflation and recession).