Question
Economics Question on Resource Allocation
The Government of India reduced its defence budget expenditure to increase its health budget expenditure during the COVID pandemic. Which objective of the budget was the government trying to achieve through this step?
A
Reallocation of Resources
B
Redistribution of Income
C
Economic Growth
D
Balanced regional development
Answer
Reallocation of Resources
Explanation
Solution
Reallocation of resources refers to the shifting of government spending from one sector to another based on current priorities. During the COVID pandemic, the government increased health expenditure by reducing defence expenditure, aiming to focus on healthcare needs.