CBSE 2025, Set 1

Question

'Under the Ayushmaan Bharat Scheme, the government provides free medical treatment to the poorer section of the society.'

Identify and explain the nature of budget expenditure and its objective, indicated in the given statement.

Edvaya · Accepted Answer

The correct answer is Subjective. The highlighted statement exhibits the **Revenue Expenditure**. Revenue expenditure is the expenditure that neither leads to creation of assets nor leads to reduction in liabilities of the government.

The indicated objective of the government budget is the **'Redistribution Function'**. Free medical treatment under the Ayushmaan Bharat Scheme aims to bring equity in the income distribution in the economy. Such services to poorer sections of society reduce their medical expenses, leaving higher disposable income in their hands. Thereby bridging the gap between the rich and the poor.

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Economics > Introductory Macroeconomics > Government Budget

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