Question

State the importance of the Government budget.

Answer 1

Importance of Budget

• Union Budget is important because it affects people and the economy in general in a number of ways.
• Taxes are the most interesting part of any budget. Taxes determine the fate of businesses and individuals.
• The level of disposable income of the taxpayers depends on the tax rates presented in the budget.
• Government expenditure on various heads such as defense, administration, infrastructure, education, and health care, etc. affects the lives of the citizens and overall economy.
• Also, the budget is important because Governments use it as a medium for implementing economic policies in the country.
• Budgetary actions of the Government affect the production, size, and distribution of income and utilization of human and material resources of the country
• The scope and importance of public finance in a modern economy have undergone an immense change over the last 100 years.