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In India, there are extreme inequalities of of income and wealth and a majority of population live below the poverty line. How can budgetary policy help in solving this problem ? |
| Answer» Solution :GOVERNMENT can reduce such inequalities of income and WEALTH through its budgetary policy. Government can aim to influence distribution of income by imposing taxes on the rich and spending more on the welfare of the poor. It will reduce income of the rich and raise STANDARD of living of the poor, THUS reducing inequalities in the distribution of income. | |