Public expenditure of India: Trend and effects

Abstract

Budget is an investment vehicle that boosts economic growth. Government use budgeting system to plan for the growth and development over a specified period of time. In India the budget is government’s most important economic and fiscal policy tool. And it is most economic event that happens every year in the country, which outlines all the economic planning of the Government of India for the subsequent year. It is not only important for the corporate but for individuals from all sections of the society. Budget translate government’s policies, political commitments, and goals into decisions on how much revenue to raise, how it plans to raise it, and how to use these fund to meet the country’s needs. Government budgeting is important because it enables the government to plan and manage its financial resources to support the implementation of various programs and projects that best promote the development of the country. Through budget, government can prioritize and put into action its plans, programs and policies within the constraint of its financial capability as dictated by economic actions.