Objectives of Government Budget:

The government budget is an important tool used by the government to manage the economy and achieve various socio-economic objectives. Some of the key objectives of the government budget are as follows:

1. Allocation of Resources:
- The primary objective of the government budget is to allocate resources efficiently and effectively. It aims to allocate funds to different sectors of the economy based on their importance and priority.
- The budget ensures that adequate funds are allocated for sectors like education, healthcare, infrastructure, defense, etc., which are crucial for the overall development of the country.

2. Economic Stability:
- Another objective of the government budget is to maintain economic stability in the country. It aims to achieve a balance between the aggregate demand and aggregate supply in the economy.
- The budget helps in controlling inflation and deflation by implementing appropriate fiscal policies like taxation and government spending.

3. Redistribution of Income and Wealth:
- The government budget plays a significant role in redistributing income and wealth in the economy. It aims to reduce income inequality and ensure social justice.
- Through progressive taxation and various welfare schemes, the budget helps in transferring resources from the rich to the poor, thus reducing the wealth gap.

4. Economic Growth and Development:
- The budget serves as a tool for promoting economic growth and development in the country. It allocates funds for infrastructure development, research and development, and other productive activities.
- By providing necessary financial resources, the budget encourages investments, boosts productivity, and stimulates economic growth.

5. Demand Management:
- The government budget also focuses on managing aggregate demand in the economy. It aims to regulate the overall level of spending and consumption to achieve macroeconomic stability.
- During periods of recession or low economic growth, the budget can increase government spending to stimulate demand. Conversely, during periods of high inflation, it can reduce spending to control demand.

6. Fiscal Discipline:
- Another objective of the government budget is to ensure fiscal discipline and maintain a sustainable fiscal position. It aims to manage public finances in a responsible manner.
- The budget sets targets for revenue generation, expenditure control, and fiscal deficit to maintain a stable fiscal situation and avoid excessive borrowing.

Overall, the government budget plays a crucial role in the overall economic management of a country. It helps in resource allocation, economic stability, income redistribution, economic growth, demand management, and fiscal discipline.