class 12th government budget economics

1. GOVERNMENT BUDGET
Currency Verma

2. Meaning Of Government
Budget
It is an annual financial statement showing itemwise
estimates of
expected revenue and anticipated expenditure during
a fiscal year.

3. Two Types Of
Budget
(a)Receipts
(b)Expenditure

4. Aims and objective of
government budget
1. Economic growth
2. Reduction of poverty
and unemployment
3. Reduction of
inequalities/
redistribution of
income
4. Reallocation of
resources
5. Price ability/

5. 1.Economic
growth
The government
make great
efforts to achieve
its revenue and
high rate of
economic growth
so as to improve
living standard of

6. 2. Reduction of
poverty and
unemployment
To eradicate mass
poverty and
unemployment by
creating
employment
opportunities and
providing maximum
social benefits to

7. 3.(i)Reduction of
inequality
To reduce
inequality of income
and wealth,
government can
influence
distribution of
income through
levying taxes on the

8. (ii)redistribution of
income
Income redistribution means
allocating the income in such a
way that reduce inequalities
and also there is no
concentration of income among
few rich.

9. Reallocation of
resources
To Reallocation
the recourses so
as to achieve
social and
economic
objective.

10. Price ability/
economic stability
Government bring economic
stability i.e. in, control
fluctuation in general price
level through taxes, subsidies
and expenditure.
Inflation govt.

11. Financing and
management of
public enterprises
To finance and
manage public
enterprises which
are of the nature of
national monopolies
like railways power
generation and water
lines

13. Impact of budget
 Fiscal discipline- it promotes
aggregate fiscal discipline
though controlled expenditure in
view of limited recourses
revenue
 Social priorities- resources of
the country are allocated on the
basis of SP
 Delivery of goods and services-
it contain effective and efficient
programs for delivery of goods
and services to achieve its
target and goals

14. Thank You….