Question: What Is The Objective Of The Government?

In order to achieve this economic stability the government focus on achieving four principle objectives.

These objectives are; to achieve equilibrium in the balance of payments, to keep unemployment levels low, to keep inflation levels low and for overall growth of the economy to be achieved.3 May 2007

What are the main objectives of the government?

5 Main Aims of Government for Economy Development – Discussed

  • Full Employment: ADVERTISEMENTS:
  • Price Stability: Governments aim for price stability because it ensures greater economic certainty and prevents the country’s products from losing international competitiveness.
  • Economic Growth:
  • Redistribution of Income:
  • Balance of Payments Stability:

What are the 4 government objectives?

The four major objectives are:

  1. Full employment.
  2. Price stability.
  3. A high, but sustainable, rate of economic growth.
  4. Keeping the balance of payments in equilibrium.

17 Dec 2016

What are the main objectives of development?

The aim of economic development is to improve the material standards of living by raising the absolute level of per capita incomes. Raising per capita incomes is also a stated objective of policy of the governments of all developing countries.

What are the government’s main economic objectives?

The four major objectives are:

Full employment. Price stability. A high, but sustainable, rate of economic growth. Keeping the balance of payments in equilibrium.

Why is budget important in government?

One of the primary purposes of budgeting is to provide control over the revenues and expenditures of the government. The budgets are an important part of maintaining control of a government’s finances and are a means of achieving the financial reporting objective of accountability.23 Jan 2015

What is the ultimate goal of government?

The purpose of our Federal Government, as found in the Preamble of the Constitution, is to “establish Justice, insure domestic Tranquility, provide for the common defense, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our posterity.”

What are the 5 macroeconomic objectives?

Economists usually distinguish five objectives of macroeconomic policy, which in its turn can also be used to appraise the performance of the economy. The macroeconomic objectives are: economic growth, full employment, price stability, income equality and balance of payment equilibrium.11 Mar 2013

What are the 5 main economic goals?

The five economic goals of full employment, stability, economic growth, efficiency, and equity are widely considered to be beneficial and worth pursuing. Each goal, achieved by itself, improves the overall well-being of society. Greater employment is typically better than less. Stable prices are better than inflation.

What is a social objective?

A social objective is a statement that details a specific desired outcome of a project that is related to the interaction of the individuals, groups, and institutions within a society. Often our social objective is related to improving human wellbeing.

What are the types of economic policy?

Policy makers undertake three main types of economic policy: Fiscal policy: Changes in government spending or taxation. Monetary policy: Changes in the money supply to alter the interest rate (usually to influence the rate of inflation). Supply-side policy: Attempts to increase the productive capacity of the economy.

Why is economic growth the most important objective?

Economic growth means an increase in real GDP – which means an increase in the value of national output/national expenditure. Economic growth is an important macro-economic objective because it enables increased living standards, improved tax revenues and helps to create new jobs.28 Jul 2017

What is the purpose of economic policy?

Policy is generally directed to achieve particular objectives, like targets for inflation, unemployment, or economic growth. Sometimes other objectives, like military spending or nationalization are important. These are referred to as the policy goals: the outcomes which the economic policy aims to achieve.