What are the objectives of government …

Objectives of a Government Budget. Briefly put, promoting rapid and balanced economic development with equality and social justice has been the general objective of all our policies and plans. General objectives of a government budget are as under:
(i)    Economic growth. To promote rapid and balanced economic growth so as to improve living standard of the people. Economic growth implies increasing capacity of the economy to produce more goods and services. Public welfare is the main guide.
(ii)    Reduction of Poverty and Unemployment. To eradicate mass poverty and unemployment by creating maximum employment opportunities and providing maximum social benefits to the poor. Social welfare is the single most objective of the government. Every Indian should be able to meet his basic needs like food, clothing, housing along with decent health care and educational facilities.
(iii)    Reallocation of Resources. (A 2010, D 2011) To reallocate resources in line with social and economic objectives, government has to allocate resources into areas where private sector is not coming, e.g., sanitation, water supply, rural development, education, health, etc. Moreover, government provides more funds to productive sectors and draws away resources from some other sectors to promote balanced economic growth of different regions.
(iv)    Reduction of inequalities/Redistribution of income. To reduce inequalities of income and wealth government can influence distribution of income through levying taxes on the rich and granting subsidies to poor. Government uses progressive taxation policy, i.e., high rate of tax on rich people and lower rate on lower income group. Government provides subsidies and amentities to people whose income level is low. More, emphasis is laid on equitable distribution of wealth and income. Economic progress in itself is not a sufficient goal but goal must be equitable progress.
(v)    Price Stability/Economic stability. Government can bring economic stability i.e. can control fluctuations in general price level through taxes, subsidies and expenditure. For instance when there is inflation (continuous rise in prices), govt. can reduce its expenditure and when there is depression characterised by following output and prices, govt. can reduce taxes and grant subsidies to encourage spending by people.
(vi)    Management of public enterprises. To manage, public enterprises which are of the nature of monopolies like railways, electricity, etc.