Question

The Government, under UjjwalaYojana, is providing free LPG kitchen gas connections to the families `below the poverty line'. What objective the government is trying to fulfil through the government budget and how? Explain.

Answer 1

Through Ujjwala Yojana, government is trying to reduce gap between the rich and the poor. Government sells LPG gas at a higher rate to those who can afford it. Revenue so collected is used to provide LPG gas connection free of cost and also at subsidised rates to the families below the poverty line. This reduces disposable income of the rich and increases that of the poor, reducing the gap between the two.