Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Government Budget and Economy

Question:

Which one is not the objective of government budget?

Options:

Reallocation of resources

Economic stability

Increase in regional disparities

Economic growth

Correct Answer:

Increase in regional disparities

Explanation:

The correct answer is Increase in regional disparities.

The objective of the government budget is to promote economic stability, reallocate resources efficiently, and foster economic growth. However, increasing regional disparities is not a desirable or intended outcome of the government budget.

  • Economic stability: The government budget aims to maintain stable prices, control inflation, and promote full employment by managing fiscal policy.

  • Reallocation of resources: The government budget allocates resources across various sectors, such as education, infrastructure, healthcare, and social welfare, to ensure equitable distribution and address societal needs.

  • Economic growth: The government budget promotes economic growth by investing in infrastructure, education, and research and development, creating a conducive environment for businesses to thrive.