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Explain the allocation function of a Government budget. |
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Answer» Allocation of resources is an important function of Govt. budget. The Govt. reallocates its resources in accordance with economic and social priorities of the country through its budget. The Govt. can encourage the private sector through tax concessions, subsides etc. to undertake production of certain goods in public interest. The Govt. undertake activities like water supply sanitation etc. in public interest. |
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