AIR 14 · CSE 2025 · GS3 · 28 pages

Surabhi Yadav: GS3 answer copy

20 answers by Surabhi Yadav, as written in the test. Each question opens a page with how other toppers answered it.

The questions

The answers

Question 1 · 10 marks · 178 words written

What do you understand by Windfall tax? Do you think that windfall taxes can effectively redistribute wealth and promote greater economic equality?

Opening · a figure

Ans. World Inequality Report 2022, says top 10% holds 57% income while bottom 50% holds only 13% income. Thus it becomes important for govt to take measures to promote welfare state.

Body · points

Windfall tax is the taxation on sudden profit by a company/individual. It is to ensure that profits remain accountable.

Windfall tax can help redistribute wealth & promote economic equality -

1- Increase the revenue receipt of the government, which could be used in various welfare schemes like MGNREGA to provide employment 2- Promote social justice through schemes like Pradhan Mantri Anna Yojana 3- Promote Skill (PM Kaushal Vikas Yojana) - could engage youth in employment - economic welfare.

However, windfall tax has limitations

1- The share of tax to total income is lower 2- It could promote tax evasion, corruption or money laundering to prevent taxes. 3- Difficult to decide what sudden profit means - the income value limitations to decide tax.

Close · a way forward

Thus, an innovative step to reduce ginni coefficient and promote equality. Other steps like ease of doing business, helping small & Marginal farmers could help.