Govt Budget And Economy

Question 1

How can a government budget help 1.in reducing inequalities of income
Or
2.in altering distribution of income
Or.
3. Re distribution of income

Question 2

Give 3 difference between direct and indirect taxes.

Answer 2

1. Direct tax - imposed on income and wealth
   Indirect tax - imposed on goods and services
2. DT - cannot be shifted on to other person
   ID- can be shifted to other person
3. DT- Progressive in nature
   ID- non progressive in nature