Question

Which of the following sentences best describe the use of tax money?

• A. Taxes are used for providing salaries, pensions, funding military operations, etc.
• B. Taxes are used for making politicians immensely rich.
• C. Taxes are used to fund richer countries and their activities.
• D. Taxes are used to strengthen the financial conditions of richer countries.

Answer 1

The correct option is A Taxes are used for providing salaries, pensions, funding military operations, etc.

When people pay taxes, the government deposits them in the accounts maintained with the Reserve Bank of India. This money is used to make payments to provide salaries, pensions, medical benefits, welfare schemes, fund military operations, and for other expenses.