CSEET · Economic and Business Environment · Indian Union Budget
Which of the following is generally regarded as a core objective of the Union Budget in a mixed economy like India?
A core objective of the Union Budget is reallocating resources toward social and economic priorities and reducing inequalities in income and wealth, alongside stabilising the economy and promoting growth. Setting the repo rate or daily exchange rate is the Reserve Bank's role, not a budget function.
- AReallocation of resources and reduction of inequalities in income and wealthCorrect
- BFixing the repo rate for commercial banks
- CDetermining the exchange rate of the rupee daily
- DSetting minimum prices for all private goods
Explanation
The budget is a fiscal tool used for resource allocation, redistribution of income and wealth, and economic stabilisation. The repo rate and exchange rate management belong to the RBI's monetary and forex operations, and the Budget does not fix prices of all private goods.
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