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Question : Which of these is one of the functions of the Government budget?

Option 1: Management of money supply

Option 2: Maintaining strict budgetary balance

Option 3: Redistribution of income and wealth

Option 4: Price fixation


Team Careers360 7th Jan, 2024
Answer (1)
Team Careers360 21st Jan, 2024

Correct Answer: Redistribution of income and wealth


Solution : The correct option is Redistribution of income and wealth .

One of the functions of the Government budget is the redistribution of income and wealth. The government can use the budget to implement policies that aim to reduce income and wealth inequality within a society. This can be achieved through progressive taxation, social welfare programs, subsidies for low-income individuals or sectors, and other measures designed to transfer resources from the wealthier segments of the population to those with lower incomes. Collecting revenue from higher-income individuals and allocating resources to support lower-income groups, ultimately promotes a more equitable distribution of wealth and income in society.

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