A government budget is an annual financial statement showing item wise estimates of expected revenue and anticipated expenditure during a fiscal year. One of the main functions of the government budget is to ensure economic growth in the country.
The government budget focuses on the mobilisation of sufficient resources for investment in the public sector. The government budget always facilitates economic growth. A well-structured budget paves the way to achieve economic growth in an economy.
Economic Growth results in a sustained increase in the real GDP. Public welfares through government budgets boost the process of economic growth. Government is responsible for providing public welfare for its citizens like education, better infrastructure, better health care etc. The economic growth also depends on the rate of savings and investment. The government is keen to make various provisions in the raise overall rate of savings and investments in the economy.
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