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Through it's budgetary policy government allocates …

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Through it's budgetary policy government allocates resources in accordance with the requirements of the country do you agree with the given statement ? Justify your answer with valid reason

Posted by Gagandeep Pooni 5 years, 1 month ago

CBSE > Class 12 > Economics

2 answers

Noorain Ahmed 5 years, 1 month ago

Yes the government allocates the resources to achieve the goal of social welfare and profit maximization by it budgetary policy Tax concession and subsidies -: To increase investment the government provides tax concession to the production units for eg -: in case of production of socially useful things ( like khadi) govt provides tax concession or subsidies on the other hand in case of production of harmful goods ( like Alcohol) are discourage by heavy taxation on the production of such goods Directly producing Good -: Such goods which are not produce by private production units like water supply , railway,goods of law and order are these good are called ,public goods these good are directly produced by govt itself

Priya Pandey 5 years, 1 month ago

Yes

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