Question

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 1

The Correct Option is A

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.

Answer 2

Reallocation of resources refers to the process of shifting government spending from one sector to another based on changing priorities and emerging needs. This is an essential tool for governments to address pressing issues and ensure optimal use of available resources. The decision to reallocate resources is often influenced by economic conditions, public health challenges, or other urgent needs in society.

A prime example of this occurred during the COVID-19 pandemic, when the government faced the unprecedented challenge of managing public health while also maintaining other critical functions. To prioritize healthcare, the government increased health expenditure significantly. This reallocation of resources was achieved by reducing defence expenditure temporarily, thereby ensuring that funds could be redirected to address the immediate needs of the healthcare sector.

The decision to shift resources in this way highlights the dynamic nature of government spending, where priorities must be adjusted quickly to meet the changing needs of the population. This reallocation not only helped bolster the healthcare system but also demonstrated the government's ability to respond to a public health crisis by redirecting funds from less urgent sectors.