Government budget features encompass several key elements:
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a) Revenue and expenditure: The budget outlines the expected sources of government revenue, such as taxes, fees, and other income streams, while also allocating funds for various expenditures. These expenditures typically cover areas such as infrastructure development, healthcare, education, defense, and social welfare programs.
b) Fiscal deficit/surplus: A crucial aspect of the budget is the calculation of the fiscal deficit or surplus. This indicates the disparity between government expenditure and revenue. A fiscal deficit arises when expenditure surpasses revenue, while a fiscal surplus occurs when revenue exceeds expenditure.
c) Resource allocation: The budget determines the allocation of resources among different sectors, regions, and specific projects. It aims to ensure equitable distribution, foster economic growth, and enhance social welfare.
d) Policy priorities: The budget reflects the government’s policy priorities by allocating funds to sectors that require attention and investment. These priorities can include healthcare, education, infrastructure development, poverty alleviation, and environmental sustainability.
e) Economic stabilization: Budgets can be employed as a tool for economic stabilization, with fiscal policies designed to control inflation, stimulate economic growth, or address unemployment rates.