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प्रश्न
Explain how government budget can be used to influence the distribution of income?
उत्तर
The government budgetary policy can influence the distribution of income in the following ways:
- The government ensures productive expenditure to maximise the welfare of the nation with the minimum level of profit.
- The government regularises the activities of the private sector to provide social benefit to the poor.
- A tax is a legally compulsory payment imposed by the government on households and producers. The government imposes taxes on socially unsafe goods such as alcohol and tobacco. Thereby resources will be shifted to the production of socially essential goods
- Subsidies do not reduce the liability of the government and it does not add to the assets of the government. The government also provides subsidies for necessary goods such as wheat, rice and sugar. Thereby the resources are shifted from the production of goods for the rich to the production of goods for the poor
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संबंधित प्रश्न
Explain how government budget can used to bring in price stability in the economy.
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Explain the role of the government budget infighting inflationary and deflationary tendencies.
Explain the budget expenditure of the government.
Explain the economic stability as objectives of government budget.
Explain the concept of ‘fiscal deficit’ in a government budget. What does it indicate?
State whether the following statements are TRUE or FALSE with reason.
Government budget is a family budget.
Which of the following are the objectives of government budget?
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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?
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- reallocation of resources
- price stability
- redistribution of income
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