The government's use of proceeds from progressive taxes to supply essential food grains at highly subsidized prices to BPL households is an example…

CA Foundation · Business Economics · PYQS · September 2025
The government's use of proceeds from progressive taxes to supply essential food grains at highly subsidized prices to BPL households is an example of:
(A) A. Allocation Function
(B) B. Stabilization Function
(C) C. Redistribution Function
(D) D. Production Function

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. Redistribution Function

Topics: Public Finance

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