"Budget serves as a public policy document expressed in money and is an embodiment of implied policy objective in monetary terms."With this reference assess the role played by budget in economy.
The budget document is the most important policy document, which contains both revenue and expenditure plans of government. The key functions of a government budget are discussed below:
Public Policy Document
The budget serves as a public policy document expressed in money and is an embodiment of implied policy objective in monetary terms because it deals with spending of public money on various policies framed for public works.
Redistribution of Wealth
The most important function of budget is redistribution of wealth. However, that needs proper integration of revenue and expenditure side.
Instrument of Economic Development
Budget serves as an instrument of economic development, which embodies a work programme for administration and government. It’s a source of information for all stakeholders.
Instrument of budgetary control
Budget also serves as an instrument of financial control by legislative over executive. It also serves as instrument of accountability and financial control. Further, it is a management tool for achieving efficiency, productivity, improvements and for determining the degree to which policy goals have been accomplished.
Instrument of accountability
Budget is an instrument to make elected legislators accountable to people. It also upholds the economic, social and cultural rights of the people. (199 words)
Topics: GS-III: Government Budgeting