Practicing Success
How does budget play a role in reducing inequalities in Income and Wealth? |
With the help of government revenue and expenditure By providing subsidies By progressive tax brackets All of the above |
All of the above |
One of the major objectives of the government budget is to reduce the income disparities among the people of the country. This is done with the help of fiscal instruments of- taxation and subsidies. Higher taxation is imposed (revenue) on the people with extra income and subsidies (expenditure) is given to enterprises who would set up their factories in backward areas. This is also done to improve regional backwardness in the nation. |