Under the Union Budget 2022, Government during the budget announced to impose higher taxes on the people earning more than two crore rupees and use that money in providing LPG cylinder subsides to poor people under Ujjawala Yojana. Which objective of Government budget is achieved ?

Reducing inequalities and Redistribution of income and wealth

The correct answer is option (3) : Reducing inequalities and Redistribution of income and wealth

Explanation:

• Reducing inequalities: By imposing higher taxes on the wealthy, the government aims to reduce income disparities between the rich and the poor. This is a direct measure to address income inequality.

• Redistribution of income and wealth: The collected tax revenue from the higher-income individuals is then redistributed in the form of subsidies to the economically disadvantaged sections of society. This redistributive policy helps in ensuring that the benefits of economic growth are shared more equitably among all citizens.

Therefore, the policy directly addresses the issues of reducing economic inequalities and redistributing income and wealth within the country.