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Question
Suppose you are an advisor to the Government of Karnataka. The state plans to reconstruct houses for the poor who lost their homes in a flood. However, the government needs to obtain extra money for that. Which of the following would be the correct measure to suggest to the government?
Suppose you are an advisor to the Government of Karnataka. The state plans to reconstruct houses for the poor who lost their homes in a flood. However, the government needs to obtain extra money for that. Which of the following would be the correct measure to suggest to the government?
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Solution
The correct option is C Introduce cess
For post-calamity reconstruction measures, such as reconstruction after a flood, introduction of a flood cess is the right step for the government. Cess is an additional tax collected and used for a specific purpose. Once the government achieves its goal, it can stop collecting this particular cess. In fact, many states, such as Kerala, introduced such cess in the past.
For post-calamity reconstruction measures, such as reconstruction after a flood, introduction of a flood cess is the right step for the government. Cess is an additional tax collected and used for a specific purpose. Once the government achieves its goal, it can stop collecting this particular cess. In fact, many states, such as Kerala, introduced such cess in the past.
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