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Question : Which of the following functions of the government budget is associated with the distribution of income?

I. Allocation function

II. Redistribution function

Option 1: Only I

Option 2: Neither I nor II

Option 3: Both I and II

Option 4: Only II


Team Careers360 23rd Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: Only II


Solution : The correct option is Only II .

The function of the government budget associated with the distribution of income is the redistribution function. This function involves the use of various fiscal policies, such as progressive taxation and social welfare programmes, to redistribute income and wealth in a society.

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