Explain how govt expenditure can be used to influence distribution of income in the society
1. Reducing inequalities of income:
By imposing more tax on rich and spending more on welfare of people.
2. Reallocation of resoureces:
By allowing tax concessions and subsidies to poor producers for their welfare.
3. Economic growth:
By moblising sufficient resources for investment in public sector and to channelise savings apart.
By imposing more tax on rich and spending more on welfare of people.
2. Reallocation of resoureces:
By allowing tax concessions and subsidies to poor producers for their welfare.
3. Economic growth:
By moblising sufficient resources for investment in public sector and to channelise savings apart.