AIR 213 · CSE 2022 · GS3 · 56 pages

Vedika Bihani: GS3 answer copy

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

The questions

The answers

Question 1 · 10 marks · 161 words written

Fiscal policy can be a key tool to reduce income inequality as well as make the poorest and the downtrodden a part of the country's growth story. Discuss in the context of India.

Opening · a definition

Fiscal policy refers to efforts of government with respect to taxation and expenditure policy. It aims to take cyclic or countercyclic measures through government budget.

Body · points and prose

Fiscal Policy to reduce income inequality

  1. Multiple slabs of GST: GST on luxury services is 18%.
  2. Progressive taxation
  3. Sin tax: tax on use of coal and tobacco
  4. Indirect taxes rationalisation: They form largest component of income, but are regressive in nature.
Diagram
Population [10%] Wealth [51%] fig: 10% population have 51% wealth in India World inequality report

Inclusive nature of fiscal policy

(1) Government right based schemes

  • NFSA
  • MGNREGA
  • MDM-ICDS

(3) Caste based

  • NSAP
  • Eklavya school

(2) Government investment policy

  • Agriculture infrastructure development fund (1 lakh cr)
  • FIDF (2 million cr)
  • 15800 cr to MSME

Way forward

(1) Proper implementation: only 49% of beneficiary covered under NFSA (GOI), only 33% of SCM fund disbursed (CAG) (2) Social Impact and Social audit Component (MDM) (MGNREGA)

Close · a framework

SDG10 of reduced inequality is needed to achieve equitable growth and social mobility.