Income redistribution aims to reduce income inequality by transferring income or wealth from higher-income groups to lower-income groups. This is primarily achieved through government fiscal policies involving taxation and expenditure.
A redistribution of income in a country can be best brought about through
Asked in UPPCS Prelims 1996 · Topic: Fiscal Policy & Revenue (Impact of Fiscal Policy on Income Distribution, Inflation, and Employment)
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Answer: A. progressive taxation combined with progressive expenditure
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