What Are The Main Objectives Of Government Budget?

What is government budget and its types?

A government budget is an annual financial statement which outlines the estimated government expenditure and expected government receipts or revenues for the forthcoming fiscal year.

Depending on the feasibility of these estimates, budgets are of three types — balanced budget, surplus budget and deficit budget..

What are the two components of government budget?

The two basic elements of any budget are the revenues and expenses. In the case of the government, revenues are derived primarily from taxes.

What are the main objectives of budget?

The various objectives of government budget are:Reallocation of Resources: … Reducing inequalities in income and wealth: … Economic Stability: … Management of Public Enterprises: … Economic Growth: … Reducing regional disparities:

What is importance of government budget?

One of the primary purposes of budgeting is to provide control over the revenues and expenditures of the government. The budgets are an important part of maintaining control of a government’s finances and are a means of achieving the financial reporting objective of accountability.

What are the 3 objectives of government budget?

The most important objectives of a government budget are re-allocating the resources across the nation, bringing down the inequalities in terms of earning and wealth, paving way for economic stability, managing public enterprises, contributing to economic growth and addressing the regional disproportions.

What are the 3 major objectives of budgeting?

The three major objectives of budgeting are described below:To set the goals for the future actions.To implement the strategies to accomplish the preset goals.To compare the actual results with the budgeted results periodically.

What is government budget and its objectives?

The government budget is an annual financial statement showing item wise estimates of expected revenue and anticipated expenditure during a fiscal year. … THE MAIN OBJECTIVES OF A GOVERNMENT BUDGET: Economic growth: to promote rapid and balanced economic growth so as to improve living standard of the people.

What are the main objectives of the government?

The main government aims for the economy are full employment, price stability, economic growth, redistribution of income and stability of balance of payments. A government can operate a range of policy measures to achieve these aims and it is judged on their success or otherwise.

What are the 3 types of budgets?

Depending on the feasibility of these estimates, Budgets are of three types — balanced budget, surplus budget and deficit budget.