Optimum utilization of resources:

To bring about an optimum utilization of resources:

The above objective can be attained via proper allocation of resources. We should direct investment in the desirable channels both in public and private sectors by giving appropriate incentives. Productive resources are, in limits capable of being employed in different ways that might accelerate the economic growth. The available resources should find their way into the socially essential lines of development.

The significance of fiscal policy in current economies occurs from the fact that the State beneath democracy is termed upon to play an active and significant role in promoting economic development and giving a vast number of necessary public utilities and services such as drinking water, civic services, sanitation, primary education, public health, social welfare, defence, and so on. Most of such goods are characterized by the property that is, non-marketable; that it can’t be sold in the market to the consumer. However payment has to be regulated in another manner, via taxation.

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