Question

Short answer type questions:
How can a govermment budget help in reducing inequallties of income? Explain.

Answer 1

The distribution of income and wealth is highly unequal in countries like India. 'Economic Divide' is huge and alarming. The problem of the economic divide is combated by the revenue and expenditure policy of the government. 'Taxation and subsidies' is the key policy instrument used by the government in this context.