Question

Explain the need for reduction in inequalities of income and wealth. Explain any two budgetary measures by which it can be done.

Answer 1

Inequalities of income and wealth reflect a section of society being deprived of even basic necessities. Thus arises the need for reducing them in society. Two budgetary measures by which it can be done:
$\bullet$ Progressive taxation.
$\bullet$ Increasing government's expenditure.