Q.3 In India, governments have drawn on budgetary resources for providing support to low-income households for augmenting their consumption of selected goods and services, and also offering incentives to support selected categories of investors and producers. What should be services and goods covered under such schemes and what should be their modes of delivery? (10 Marks)

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2 responses to “Q.3 In India, governments have drawn on budgetary resources for providing support to low-income households for augmenting their consumption of selected goods and services, and also offering incentives to support selected categories of investors and producers. What should be services and goods covered under such schemes and what should be their modes of delivery? (10 Marks)”

1. 

   June 18, 2022

   Pranav Shirke

   razor id 216516833611

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   1. 

      June 21, 2022

      Staff @CD

      Pranav

      You need to cover various dimensions in the answer, otherwise answer looks quite generic.
      Introduction is fine, schemes such as free electricity by state governments and PLI etc can also be mentioned along with the examples you have given.
      In next part, mention what all goods and services should get budgetary support- you can differentiate between essential/merit goods and freebies. In essential/merit goods you can mention points like schemes related to healthcare, education, food security etc and advantages of subsidising them. Next mention freebies like electricity, free TV sets etc and few disadvantages of subsidising them(fiscal deficit, populist measures etc).
      Next, modes of delivery part is missing in your answer- you can mention direct income support or a procurement set-up and a public distribution system for essential goods whereas budgetary allocation and indirect tax concession for production related schemes.
      Conclusion is fine.
      Keep practicing. 🙂