CBSE 2017 Class 12 Economics Delhi Set-1

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Question : 12
Total: 18
Explain how government budget can be used to influence distribution of income?
Solution:  
Government budget is an annual statement, showing estimation of receipts and expenditure during a fiscal year. Government budget would influence the distribution of income when, Government will spend less to control the level of income in the economy. On the contrary, it will spend more to decrease the level of income in the economy.
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