The primary objective government budget is to allocate resources in the best possible way so as to secure a proper balance between social and economic goals of public welfare and profit maximization.For this purpose the budget of the government may have liberal public expenditure policy like more expenditure in the field of Defence, Infrastructure and Administration to promote public welfare also the government can use taxation policy to mobilize resources for investment

Reallocation of Resources Objective of Govt. Budget

The Reallocation of Resources objective of the Government Budget aims to redistribute resources from the rich to the poor. The objective is to ensure that the benefits of economic growth reach the marginalized sections of society. One of the ways this objective can be achieved is by providing essential items of food grain to families below the poverty line.

Food Grain Distribution for Families Below Poverty Line

The government can provide essential items of food grain to families below the poverty line as a part of its social welfare programs. This can be done through the Public Distribution System (PDS) which is a network of fair price shops that distribute food grains at subsidized rates.

Impact of Food Grain Distribution on Reallocation of Resources Objective

The distribution of food grains to families below the poverty line can have a significant impact on the Reallocation of Resources objective of the Government Budget in the following ways:

1. Reducing Poverty: By providing essential items of food grain to families below the poverty line, the government can help reduce poverty in the country.

2. Redistributing Resources: The distribution of food grains at subsidized rates can help redistribute resources from the rich to the poor.

3. Improving Health and Nutrition: The provision of essential items of food grain can help improve the health and nutrition of families below the poverty line.

4. Stimulating Economic Growth: By providing essential items of food grain to families below the poverty line, the government can stimulate economic growth by increasing demand for agricultural produce.

Conclusion

The distribution of essential items of food grain to families below the poverty line can be an effective way to achieve the Reallocation of Resources objective of the Government Budget. By reducing poverty, redistributing resources, improving health and nutrition, and stimulating economic growth, the government can ensure that the benefits of economic growth reach the marginalized sections of society.