1.

Government provides essential items of food grains almost free to the families below the poverty line . Which objective the government is trying to fulfil through the government budget and how ? Explain.

Answer»

Solution :By providing essential items of food grains almost free to the families below the poverty LINE , government is TRYING to reduce the gap between the rich and the poor. Government taxes the rich and SPENDS the amount on the poor . This reduces DISPOSABLE income of the rich and INCREASES the disposable income of the poor.


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