Question

"Under the 'Production Linked Incentive' scheme, the Government of India offers various benefits like reduced import-export duties, incentive to investors, tax-rebates etc." 

In the light of above statement, identify and explain the Budget objective and its likely consequences.

Answer 1

Economic growth is one of the budget objectives outlined in the statement. Economic growth is defined as a sustained increase in an economy's real GDP, or the volume of goods and services produced. Budgets can be an important tool for ensuring economic prosperity in a country. This can be accomplished by providing tax rebates, incentives to investors, and lowering tax responsibilities. This will raise investment and savings in the economy, resulting in capital formation and enhancing the country's economic growth.