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Question
Briefly explain why direct taxes foster civic consciousness among people.
Answer in Brief
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Solution
- Direct taxes create a spirit of civic responsibility amongst the tax-payers.
- Since the tax-payers provide the funds from their own pockets to the government, they take keen interest in seeing that these funds are properly utilised.
- This public awareness plays an important role in checking the wastage of public expenditure.
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Role of State in Economic Development
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Chapter 6: The State and Economic Development - QUESTIONS [Page 167]
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