Sagar Chandra Mondal

ID. : 17033

Why does finance minister require financial statements of the government?

In order to maintain economic balance and allocate resources properly, finance minister has to take many
decisions and financial statements of the government help him to take right decisions. Besides this,
finance minister requires the financial statements of the government for the following reasons:
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Comparing the actual results with the budgeted results.

Evaluating the effectiveness and efficiency of his activities.
Assessing the financial condition of the country.
Monitoring and controlling the activities of the government employee.
Controlling the expenditure of the government.
Ensuring that cost are matched with benefits accruing therefrom.