Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Government Budget and Economy

Question:

Identify the objectives of government budget from the following.

(A) Opening bank accounts of people.
(B) Economic Stability.
(C) Increase the employment rate in the economy.
(D) Redistribution of income

Choose the correct answer from the options given below:

Options:

(A), (B) and (D) only

(A), (B) and (C) only

(B) and (D) only

(C) and (D) only

Correct Answer:

(B) and (D) only

Explanation:

The correct answer is Option (3) → (B) and (D) only

The main objectives of a government budget are:

  1. Economic Stability —The government uses fiscal policy (taxation and expenditure) to control inflation, deflation, and maintain overall stability in the economy.

  2. Redistribution of Income and Wealth —Through progressive taxation and welfare expenditure, the government reduces income inequality and ensures social justice.

Other options explained:

  • (A) Opening bank accounts of people → This is a specific policy initiative (like Jan Dhan Yojana), not an objective of the government budget.

  • (C) Increase the employment rate → It can be a means to achieve economic growth, but not a direct objective of the government budget.