Q-12 = How budget deficit can be removed
DEFICIT BUDGETINGDeficit budgeting means that Govt. expenditure is more than its income from taxes and fee etc. Resources for deficit budget are met by borrowing, which is called Deficit Financing. Pakistan needs financial assistance because the development programs require large finance, while domestic savings and income from tax is not enough for this purpose. Increasing savings habits, population control, elimination of corruption, decrease in non-productive expenditure and increase in agricultural and industrial products can remove budget deficit.
MEASURES FOR REMOVING DEFICIT BUDGET
1. Saving habits should be increased
2. Output of agricultural and industrial sectors should be increased
3. Non-productive expenditures should be decreased
4. Political stability should be maintained
5. Economic policies should have continuity
6. Tax department should be strengthened and tax collection be increased
7. Fiscal discipline should be maintained
8. Population growth should be checked
DEFICIT BUDGETINGDeficit budgeting means that Govt. expenditure is more than its income from taxes and fee etc. Resources for deficit budget are met by borrowing, which is called Deficit Financing. Pakistan needs financial assistance because the development programs require large finance, while domestic savings and income from tax is not enough for this purpose. Increasing savings habits, population control, elimination of corruption, decrease in non-productive expenditure and increase in agricultural and industrial products can remove budget deficit.
MEASURES FOR REMOVING DEFICIT BUDGET
1. Saving habits should be increased
2. Output of agricultural and industrial sectors should be increased
3. Non-productive expenditures should be decreased
4. Political stability should be maintained
5. Economic policies should have continuity
6. Tax department should be strengthened and tax collection be increased
7. Fiscal discipline should be maintained
8. Population growth should be checked