Explain objective of stability of prices of government budget OR Explain the economic stability objective of a government budget .

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Explain objective of stability of prices of government budget
OR
Explain the economic stability objective of a government budget .


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Salim Ahmed Kawsar

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Government budget is used to prevent business fluctuations of inflation or deflation to achieve the objective of economic stability. The government aims to control the different phases of business fluctuations through its budgetary policy. Policies of surplus budget during inflation and deficit budget during deflation helps to maintain stability of prices in the economy.

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