| (i) Margin requirements |
| (ii) Moral suasion |
Answer:
Two main objectives of a government budget are as follows: (i) Generation of Employment Government tries to promote labour intensive technology, public works programmes like construction of roads, dams, canals, bridges, etc to promote employment generation the economy. Several programmes are initiated through budget to reduce the problem of poverty and unemployment. (ii) Economic Stability Government tries to establish economic stability by its budgetary policies. Economic stability refers to a situation without fluctuations in price levels and stability of exchange rate in an economy. Economic stability is achieved by protecting the economy from harmful effects of various trade cycles and its phases, i.e. boom, recession, depression and recovery
You need to login to perform this action.
You will be redirected in
3 sec
