🔆 Q: What are the goals of government budgeting? List the key components of the government budget in India. 📍 Answer ✅ What is the Government Budget? The government budget is a statement of estimated receipts and expenditures for a financial year (April 1 – March 31), as per Article 112 of the Indian Constitution. It is a crucial tool for fiscal management, ensuring economic stability and resource allocation. 📍 Goals of Government Budgeting ✅ 📊 Allocation of Resources The government funds public goods like national defense, roads, and governance, which markets cannot provide efficiently. ✅ 💰 Redistribution of Income Uses taxation and subsidies to reduce income inequality and ensure equitable resource distribution. ✅ 📈 Economic Stabilization Implements fiscal policies to manage inflation, boost demand during downturns, and stabilize the economy. 📍 Key Components of the Government Budget in India ✅ 📑 Revenue Budget (Day-to-Day Expenditures & Earnings) Revenue Receipts: Includes tax revenues (income tax, GST) and non-tax revenues (fees, dividends, fines) that do not create liabilities. Revenue Expenditure: Covers salaries, pensions, subsidies, interest payments, and grants to states. ✅ 🏗 Capital Budget (Long-Term Investments & Liabilities) Capital Receipts: Generated through borrowings, loans, and disinvestment (sale of government assets). Capital Expenditure: Invested in infrastructure, machinery, and financial assets, ensuring long-term growth. 📍 Conclusion ✅ The government budget plays a critical role in resource allocation, economic stability, and social equity. By balancing expenditures and revenues, it ensures sustainable economic growth.