Official Answer Key & Detailed Solution
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Correct Answer: Option (A) — progressive taxation combined with progressive expenditure
Concept & Option Breakdown
Standard Reference VerifiedEffective income redistribution requires a two-pronged fiscal policy:
- Progressive taxation: Imposing higher tax rates on wealthier income brackets to compress income inequality.
- Progressive expenditure: Channelling government spending towards social services, public health, free education, and targeted welfare transfers that disproportionately benefit poorer segments.
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