Explain how the government can use the budgetary policy in reducing inequality of income in the economy.

OR

Discuss briefly the role of the government budget in influencing ‘‘allocation of resources’’ in the economy.

Equal distribution of wealth is a way to provide social justice. This justice is provided by the government of the country.

a. The government uses fiscal tools like taxation subsidies, transfer payments and through these, they try to equate the society.

b. The government imposes taxes on the rich and which is then spend upon the welfare of the needy and the poor.

c. The cess like education cess, swachh Bharat cess, etc are mandatorily included when we purchase goods and services and the amount goes to the respective fund which then gets utilized for the development and welfare.

OR

Allocation of resources in a country is very important for the overall growth and development of society and country. Equal distribution of wealth is a way to provide social justice. This justice is provided by the government of the country.

d. The government uses fiscal tools like taxation subsidies, transfer payments and through these, they try to equate the society.

e. The government imposes taxes on the rich and which is then spend upon the welfare of the needy and the poor.

f. Government reallocate the resources like the public goods are made available only by the government-run organizations and not by private firms.