Saved Bookmarks
| 1. |
How can a government budget help in reducing inequalities of income? Explain. |
|
Answer» 1. Budget of a government shows its comprehensive exercise on the taxation and subsidies. 2. A government uses fiscal instruments of taxation and subsidies with a view of improving the distribution of income and wealth in the economy. 3. A government reduces the inequality in the distribution of income and wealth by imposing taxes on the rich and giving subsidies to the poor, or spending more on welfare of the poor. 4. It will reduce income of the rich and raises the living standard of the poor, thus, leads to equitable distribution of income. 5. Expenditure on special anti poverty and employment schemes will be increased to bring more people above poverty line. 6. Public distribution system should be inferred so that only the poor could get foodgrains and other essential items at subsidised prices. 7. Equitable distribution of income and wealth is a sign of social justice which is as the principal objective of any welfare state in India. |
|