Objective of Allocation of Resource: The government of a country, through its budgetary policy, directs the allocation of resources in a manner such that there is a balance between the goals of profit maximisation and social welfare by ensuring that there should be production of necessity goods as well as comfort and luxury goods and the goods which cannot be provided through market mechanism like, roads, parks, street lights etc., provided by government. Government provides more resources into socially productive sectors where private sector is not involved. Moreover, the Government allocates more funds for the production of socially useful goods and draws away resources from some other sectors to promote balanced economic growth of different regions.