Question

Why should the budget of a country be passed and enacted into law on time?

Answer 1

A budget should be passed and enacted into law on time for the following reasons:

*Only when it is passed can it be communicated to those who are to implement it. Delay can cause the desired benefits to be unrealized.

*Passing of a budget and its commuinication will act as an authorization to commit resources to the various uses.

*It should become a law in time as the budget may contain taxation aspects which are to be implemented from the day they are to be effective.

*Delay in passing and enacting can leave funds unutilized. It can also delay the execution of the ongoing programs.

*Timely action needs to be taken to meet the budget deficits, if any.