THEORY OF BUDGET
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BUDGET is a tool of financial management. It is a proposal of projected fund allotment and corresponding expenditure. It is the way of financial planning and hence a part of economics. Budget is always linked with budgetary control. It is the process of matching the pre determined standard with the ACTUALS. The basic economic unit of a society is family. Family also has a budget to support the family management. Budget is a monetary statement detailing the proposed income and proposed expenditure. Hence income generation is a major task of government both external and internal income
CORPORATE ECOOMICS and budget: Our question is what is the problem with PRESENT INDIAN BUDGET. It is a budget substantiating corporate economics, a policy matter of corporate politics which mobilises and pools nation fund for the major benefit of CORPORATES. The money power of corporates decides the policy matter and consequent output of corporate budget dominates the economy WHICH IN TURN STNADS IN THE WAY OF WELFARE ECONOMICS. Welfare economics is the economic slogan of equality and welfare of the society stands as the backbone of democracy and human rights. Equitable income distribution is main feature of this economy. Survival of common people is well protected by of welfare measures promoting social welfare projects empowering the people with money power making the whole society boosted with good degree of purchasing power.. Community with good degree of purchasing power is a major factor making the economy a dynamic one. This dynamic state makes economy more productive with net work of monetary transactions. Liquidity theory of money will play its role. Welfare measures bring more liquid cash with the people which in turn boost the monetary transactions.
Corporate economics overlook social welfare policies on the ground that it is unproductive expenditure. In its strict sense no social expenditure is unproductive. Expenditure is always bilateral. Spending cannot be in vacuum. It is a monetary communication, means a sender and receiver is always needed. Circulation of money enhances volume of transactions. Higher the volume higher is the dynamic state of economy. Who is spending is a big question. People as a whole has to spend and not a minority. Involvement of community in a transaction is very important. But in a corporate economics the fund or the nation's wealth is vested with the corporates, the big minority of the economy. People with poor purchasing power is out of the game. or abandoned form the monetary picture. Corporates are the agents of production. and chasing the common public for market. Market capacity is essential and this market capacity is decided by the people. If the budget overlooks the common people it will develop a state of market poverty. In a market poverty state no corporates can survive with its business. This is the vicious circle of corporate budget. Environment of deficit balance of trade is getting ready in the situation of free import duty for US. No import duty , but high export duty, the result is unfavourable foreign exchange It will ruin the domestic business and will develop a state of economic slavery, a slave of world financial and political power like US. Hence the policy is a threat to self survival.