Advertisements
Advertisements
Question
Explain the ‘redistribution of income’ objective of Government budget.
Advertisements
Solution
Redistribution of income is one of the important objectives of government budget. The government through its budgetary policy attempts to promote fair and right distribution of income in an economy. This is done through taxation and expenditure policy. Through its taxation policy, the government taxes the higher income groups in the economy. Purchasing power extracted from the higher income groups in the form of taxes is then transferred to the poor sections of the society through the expenditure policy (subsidies, transfer payments, etc.). Thus, with the help of taxation and expenditure policy in the budget, the government aims at redistribution of income such that a fair and just distribution of income is achieved in the society.
APPEARS IN
RELATED QUESTIONS
Explain how government budget can used to bring in price stability in the economy.
Explain any one objective of Government Budget.
Explain the role of government budget in bringing stability in the economy.
Answer the following question.
Explain how the government can use the budgetary policy in reducing inequalities in incomes.
Explain the concept of ‘fiscal deficit’ in a government budget. What does it indicate?
Define of the following concept.
Balanced budget
State whether the following statements are TRUE or FALSE with reason.
Government budget is a family budget.
Explain why public goods must be provided by the government.
Which of the following are the objectives of government budget?
The Government can achieve its budget objective of ‘Redistribution of Income’ by ____________.
Direct tax is called direct because it is collected directly from ______
Two friends Komal and Ritika were discussing the Government budget.
"Through its budgetary policy the government of a country directs the allocation of resources in a manner such that there is a balance between the goals of profit maximisation and social welfare".
The above-mentioned statement was given by Komal, identify the objective of Government budget was she talking about?
The focus of government budget is to:
In order to tackle the problem of rising general price in an economy, government may come up with a surplus budget to achieve the budget objective of ______.
- reallocation of resources
- price stability
- redistribution of income
