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.

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