1.

Elaborate 'economic growth' as objective of government budget.

Answer» <html><body><p></p>Solution :Economic growth <a href="https://interviewquestions.tuteehub.com/tag/implies-1037962" style="font-weight:bold;" target="_blank" title="Click to know more about IMPLIES">IMPLIES</a> a sustainable increases in real GDP of an economy i.e. an <a href="https://interviewquestions.tuteehub.com/tag/increase-1040383" style="font-weight:bold;" target="_blank" title="Click to know more about INCREASE">INCREASE</a> in volume of goods and services produced in an economy. Budget can be an effective tool to <a href="https://interviewquestions.tuteehub.com/tag/ensure-972238" style="font-weight:bold;" target="_blank" title="Click to know more about ENSURE">ENSURE</a> the economic growth in a country <br/> (i) If the government provides tax rebates and other incentives for productive activities, it can stimulate savings an divestment in the economy . <br/> (ii) <a href="https://interviewquestions.tuteehub.com/tag/spending-1222051" style="font-weight:bold;" target="_blank" title="Click to know more about SPENDING">SPENDING</a> on infrastructure in the economy promotesthe production activities across different sectors. Government expenditure is a major factor that generates <a href="https://interviewquestions.tuteehub.com/tag/demand-436956" style="font-weight:bold;" target="_blank" title="Click to know more about DEMAND">DEMAND</a> for different types of goods and services, which induces economic growth in the economy.</body></html>


Discussion

No Comment Found

Related InterviewSolutions