Q4. Why do governments do what they do?

  • Vijay Kelkar’s talk: “as a finance secretary, I can say that giving subsidies at this level is not good.”
  • Government is an agent with political motives, so even if it will affect the economy of the country in a detrimental way, but makes them popular across people to win their votes, they will implement it.

Role of the government

  • The trend for the government expenditure has gone up across the years… Which means the role of the government has increased in terms of the intervention

Todos

  • check The article on Public Economics in the economic survey.
  • what is RNR, in context of GST?
  • The revenue generated by the new tax regime will be the same,
  • If not, the government will