Objective of Budget

Article 112 of the constitution defines budget as ‘Annual Financial Statement’ of State. A government budget is a year-long country’s financial report explaining item-wise calculations of future revenue and expenditure.

Objective of Budget

  • Reallocation of Resources – It helps to distribute resources keeping in view the social and economic advantages of the country. The factors that influence the allocation of resources are - Allowance or Tax concessions and Direct production of goods and services.
  • Minimise inequalities in income and wealth – In an economic system, income and wealth inequality is an integral part. So, the government aims to bring equality by ....
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Indian Economy