InterviewSolution
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InterviewSolution
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Elaborate 'economic growth' as objective of government budget. |
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Answer» Solution :Economic growth IMPLIES a sustainable increases in real GDP of an economy i.e. an INCREASE in volume of goods and services produced in an economy. Budget can be an effective tool to ENSURE the economic growth in a country (i) If the government provides tax rebates and other incentives for productive activities, it can stimulate savings an divestment in the economy . (ii) SPENDING on infrastructure in the economy promotesthe production activities across different sectors. Government expenditure is a major factor that generates DEMAND for different types of goods and services, which induces economic growth in the economy. |
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