Home › Bihar Board Class 12 (Arts) › Economics › Government Budget and the Economy › Altering the distribution of income through taxe…
Altering the distribution of income through taxes and transfers is which function of the budget?
ARedistribution function
BAllocation function
CStabilisation function
DRegulation function
Answer & Solution
Correct answer: A. Redistribution function
By collecting taxes and making transfers the government changes personal disposable incomes, which is its redistribution function.
Related questions
Since 1997-98, which deficit measure has no longer been shown in India's budget?A high fiscal deficit need not be inflationary whenA common criticism of deficits is that they areWithout any change in fiscal policy, the budget deficit tends toDebt owed to foreigners is a real burden becauseGovernment bonds competing with corporate bonds for savings can push out private borrowersUnder Ricardian equivalence, higher government dissaving from a deficit leads toWho first argued that people save more when faced with high deficits, giving Ricardian equ