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Government Budget and Economy Government Budget and the Economy Contents of the Chapter:- • Government Budget – Meaning, Objective • Components of Government Budget • Classification of receipts – Capital and revenue • Classification of expenditure - Capital and revenue • Balanced budget surplus budget, deficit budget - meaning and implication • Revenue deficit, Fiscal deficit, primary deficit - Meaning and implication. Meaning of Government Budget:- A government budget is an annual statement of the estimated receipts and estimated expenditure of the government during a fiscal year. Objective of the Government Budget The objective that are pursued by the government through the budget are- I. Reallocation of resources -:It means managed and proper distribution of resources. As private sector can not provide all the goods and services the government has to provide these goods. II. To reduce inequalities in income and wealth-: Through budget government tries to reduce the gap betwe...

Difference Between Economic Growth and Economic Development Economic Growth  refers to the rise in the value of everything produced in the economy. It implies the yearly increase in the country’s GDP or GNP, in percentage terms. It alludes to considerable rise in per-capita national product, over a period, i.e. the growth rate of increase in total output, must be greater than the population growth rate. Economic Growth is often contrasted with  Economic Development , which is defined as the increase in the economic wealth of a country or a particular area, for the welfare of its residents. Here, you should know that economic growth is an essential but not the only condition for economic development. Definition of Economic Growth Economic Growth is defined as the rise in the money value of goods and services produced by all the sectors of the economy per head during a particular period. It is a quantitative measure that shows the increase in the number of commercia...