Reasons for deliberate surplus budget
- To reduce aggregate demand by withdrawing excess amount of money from circulation
- So that government uses surplus budget to improve on the balance of payment position for instance by promoting import substitution industries
- To accumulate reserves for future investment/needs
- To improve the confidence of the population in the government
- To prepare for disasters
- To improve cooperation with other countries through provision of aid.
CATEGORIES Economics
TAGS Dr. Bbosa Science
