Explain two ways by which the government can reduce income inequalitie

1.	Explain two ways by which the government can reduce income inequalities in a developing economy.
Answer» (i) Governments can intervene to promote equity, and reduce inequality and poverty, through the tax and benefits system which ensures that the burden of tax is not falling on the poor sections of the society. (ii) When government construct suitable expenditure policies it should leads to benefit lower income group of society to reduce poverty and narrow the income gap.

Explain two ways by which the government can reduce income inequalities in a developing economy.

Answer»

(i) Governments can intervene to promote equity, and reduce inequality and poverty, through the tax and benefits system which ensures that the burden of tax is not falling on the poor sections of the society.

(ii) When government construct suitable expenditure policies it should leads to benefit lower income group of society to reduce poverty and narrow the income gap.

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Explain two ways by which the government can reduce income inequalities in a developing economy.

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