Budget plays a decision-making role in planned economy. The goals of economic development in a planned economy may be achieved with the basic instruments of budget. A budget in a planned economy may contain the following features.
1) In a planned economy budget is based on the broad objectives of national planning.
2) In initial phase of economic development, planning is supported by deficit budget which is brought to near balanced budget in the later stage of development.
3) In a planned economy a policy of ‘Justice in taxation’ is adopted while making budget and for if the policy of progressive taxation is adopted.
4) Budget also plays a positive role in performing the economic activities in the country.
