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Discuss the role of budget as an instrument of planning?

Discuss the role of budget as an instrument of planning?

Answers

Benjamin
The role of budget as an instrument of planning include;

1: The budget in planned economy is a budget in planned economy is a budget of national resources and output capacity.It does not confine itself to review of public sector programmes only.The budget in the framework of economic planning is an over-all regulator of all the determinants of economic growth.Through budget,the government can encourage or discourage the private expenditure also.

2:The government budget can play fundamental role in increasing the rate of capital accumulation and economic growth.

3:With the increased responsibility of government for adequate spending in a planned in a planned economy,the theory of sound finance and balanced budget is delegated to the back-ground.The annual budgets are prepared within the frame-work of work of four or five years development plans.
Bom answered the question on March 24, 2018 at 10:27

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