How to view Budget
- Growth
- Development
- Inflation(Stability in Economy)
- Immediate Challenges
Based on how well the above things are promised and how feasible the solutions are for the above
we can rate the budget
The motive of Government Budget is to increase GDP.It is like when the whole economy goes up the GDP goes up. When the Cake that should be shared is large everyone gets a big piece out of it.When the economy grows, GDP grows and cash flow among people would grow.
In our GDP 2 out of 3 comes from Service sector and foreign clients contribute a huge part of it.
GDP can be measured like one below
GDP = C + I + G + (x-m)
G – Government Stimulus to promote economy Growth
X – Export
I – Private Investment
C – Consumption Expenditure(Affected due to demonetization at present)
m – Imports
As per the current Situation
- There is No Major Government Stimulus
- Import is more then Export.So x-m is Negative
- Private Investment is Lethargic because of Trump
- Consumption is low because of demonetization
Government Stimulus helps in Capital Expenditure. Capital Expenditure is the One Incurred by the Company during initial stages of establishment. Capital Expenditure are very less compared to Revenue Expenditure. Revenue Expenditure helps in daily process or functioning of company like purchase of raw materials to making it finished goods.
Difference Between Deficit, Revenue, Expenditure and Relationship