- iv. encourage investment, Government can give tax concession, subsidies etc. to the iv. encourage investment, Government can give tax concession, subsidies etc. to the producers and discourage the production of harmful consumption goods like liquor, and cigarettes etc. through heavy taxes and encourage the use of essential products by providing subsidies. This has both economic as well as social implications of budget.
- v. this way, the Government brings in several provisions in the budget to increase the overall v. this way, the Government brings in several provisions in the budget to increase the overall rate of savings and investments in the economy.
- 5. Reducing regional disparities:
- i. Government budget aims to reduce regional disparities. i. Government budget aims to reduce regional disparities.
- ii. is done through its efficient system of taxation and expenditure policy. ii. is done through its efficient system of taxation and expenditure policy.
- iii. Government achieves this by encouraging and setting up of production units in iii. Government achieves this by encouraging and setting up of production units in economically unprogressive and backward regions. This helps in reducing regional economic imbalances.
- 6. Reducing inequalities in income and wealth:
- i. inequality is an inherent part of every economic system. i. inequality is an inherent part of every economic system.
- ii. aims to narrow down such inequalities of income and misdistribution of wealth, ii. aims to narrow down such inequalities of income and misdistribution of wealth, through its budgetary policy.
- iii. aims to influence distribution of income by imposing taxes on the rich and iii. aims to influence distribution of income by imposing taxes on the rich and spending more on the welfare of the poor.
- iv. reduces income of the rich and raise standard of living of the poor, thus reducing iv. reduces income of the rich and raise standard of living of the poor, thus reducing inequalities in the distribution of income.
- 7. Reduction of poverty and unemployment:
- i. contains policies to eradicate poverty and unemployment by creating employment i. contains policies to eradicate poverty and unemployment by creating employment opportunities and providing highest social benefits to the poor people.
- ii. has its social welfare objectives. For example, in India it is tried through budget that ii. has its social welfare objectives. For example, in India it is tried through budget that every Indian should be able to meet his fundamental needs like food, clothing, and housing along with decent health care and educational facilities.
- iii. policy as manifested in the budget may help in removing poverty. iii. policy as manifested in the budget may help in removing poverty.
- iv. can open new avenues of employment at the time when there is acute unemployment iv. can open new avenues of employment at the time when there is acute unemployment problem.
- 8. Management of public enterprises:
- i. are large numbers of public sector industries which are established and managed for i. are large numbers of public sector industries which are established and managed for social welfare of the public.
- ii. is prepared with the objective of making various provisions for managing such public ii. is prepared with the objective of making various provisions for managing such public enterprises and providing financial helps for the welfare of the people.
- iii. policy of the Government helps to control public enterprises. iii. policy of the Government helps to control public enterprises.

## 9. Reallocation of resources:

- i. endeavors to reallocate the resources in line with the economic and social goals i. endeavors to reallocate the resources in line with the economic and social goals of the country through its budgetary policy.
- ii. helps to distribute resources of the country on the basis of social priorities. ii. helps to distribute resources of the country on the basis of social priorities.
- iii. comprises efficient and productive programmes to deliver goods and services and iii. comprises efficient and productive programmes to deliver goods and services and achieve targeted goals.
- iv. the private sector does not take interest in producing some goods and services, the iv. the private sector does not take interest in producing some goods and services, the government can directly jump into production.

To sum up, a study of the above points shows that in modern states budget has tremendous economic and social implications. It is a device of influencing of country's economy and sign of welfare state are reflected in the budget with its heavy outlay on the social services. A budget is a tool that transfers a general idea into a productive, action-oriented, and inspirational goal. It provides a benchmark to evaluate success or failure in achieving goals and provides suitable improving measures.

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