In any Keynesian-type view of the economic system the budget, in a national economy, has a major macroeconomic role as well as having microeconomic functions in allocating resources between sectors or between groups of people. By this is meant that the level and net balance of budgetary receipts and expenditures can exert a significant pressure on the level of output, employment and prices in the economy as a whole, as distinct from the relative levels in particular sectors of it. The Treaty of Rome envisaged no such macroeconomic role for the Community budget; its very small size in relation to the national incomes of the member states has in any case ruled out such a possibility.
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