PUBLIC FINANCE Meaning of Budget – Government budget is an annual statement, showing the item-wise estimation of receipts & expenditure during a fiscal year. Elements of Budget 1. It is a statement that shows estimated receipts & estimated expenditure during a fiscal year. 2. It shows estimates of government receipts & expenditure during a fixed period generally in a year. 3. Budget requires the approval by the parliament. Objectives of Government Budget 1. Reallocation of resources 2 . Redistribution of income & wealth 3. Economic stability 4. Management of public Enterprises 5. Promotion of economic development NOTE- In short, a budget is a powerful weapon in the hands of government through which it can affect the generation, distribution & spending of National Income. Structure of the Budget – The components of budget can also be categorised according to receipts & expenditures. On this basis two broad components are as follows:- A
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