Explain the role of the Govt .Budget in reducing in equality of income and
wealth.
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A government budget can help to reduce inequalities in income through redistribution of income and wealth in the economy. To achieve this objective government uses fiscal instruments of taxation and subsidies. By imposing taxes on rich and giving subsidies to the poor the government redistributes income in favour of poorer sections of the society. Distribution of food grain through fair-price shops to BPL below poverty line population is an important step in this direction. Equitable distribution of income and wealth is a sign of social justice.
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