1. Reducing income inequality: State fulfill the objective of reducing income inequality by taxation policy, the government makes it sure that the burden of tax is not falling on the poor section of the society. Similarly, when the government spells expenditure policy, it always attempts to benefit the lower income group of society. If the government decides about finances without caring for the social structure of the country the purpose of public finance i.e. removal of poverty and reduction of economic inequality would be affected.

2. Promoting industrial growth: The participation and support of the state affects the process of industrialization in less developed countries. For strong industrial base establishment of iron and steels industry, heavy chemical industry etc. is must. But, as this requires huge investments and long gestation period, the private investors do not come forward. Therefore, the development of such basic industries depends upon the initiative taken by the Government.

The state also extends support to the industrial sector by: 

1. Creating proper transport and communication facility. 

2. Supply of institutional credit. 

3. Setting of power projects.

3. Environmental protection: State fulfill the objective by protecting the environment in the following ways. 

Many policies and strategies laid down by Indian Government:

1. The Water Act of 1974 (Prevention and Control of Pollution) 

2. Air Act (1981) 

3. GEMS (Global Environment Monitoring System) 

4. Ganga Action Plan (GAP) 

5. Industrial pollution control was started in 1993-94 

6. Using alternative fuel like CNG for public transport.