Which of the following is not an objective of the government Budget ?

Financial support to the banks

The correct answer is option (4) : Financial support to the banks

Financial support to the banks is the odd one out. Government budgets typically focus on allocation of resources, redistribution of income, and stabilizing the economy. Providing direct financial support to banks is usually a separate policy measure rather than a primary objective of the government budget.

• Allocation of Resources: This is a primary objective of the government budget. It involves directing funds towards essential sectors such as infrastructure, education, healthcare, etc., to enhance economic growth and development.

• Redistribution of Income: Another key objective of the government budget is to achieve a fair distribution of income and wealth among different sections of society. This is often done through progressive taxation and social welfare programs.

• Stabilizing the fluctuations in the economy: Governments use fiscal policy (including budgetary measures) to stabilize the economy by managing aggregate demand, controlling inflation, and reducing economic fluctuations such as booms and recessions.

• Financial support to the banks: While governments may provide financial support to banks during crises or for specific policy reasons, it is not typically listed as a core objective of the government budget. Such support usually falls under financial sector policy rather than budgetary objectives.