The Objectives that are persued by the government through the budget are as follows:
i) Activity to secure a reallocation of resources: The government reallocates the resources in line with social and economic considerations if the market fails to do so, or does so inefficiently.
ii) Re-distributive activities : The government redistributes income and wealth to reduce in equalities by expenditure on social security, subsidies, public works etc.
iii) Stabilising activities: The government tries to present business fluctuations and maintain economic stability.
iv) Management of public enterprise: The government undertakes commercial activities that are of the nature of natural monopolies, heavy manufacturing etc.