Q.6. Write answers in ‘one’ or ‘two’ paras each : 2. State the importance of the Government budget

Balbharati solutions for Economics HSC 12th Standard Maharashtra State Board.

 

Chapter 8 : Public Finance in India

Q.6. Write answers in ‘one’ or ‘two’ paras each :

2. State the importance of the Government budget.

 

Answer: -

Following are the 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 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 since the last 100 years.