explain redistribution of income as a measure to remove poverty, what steps govt. has taken in this regard?

Redistribution of income is an important measure to remove poverty. It is necessary that the increased income attained from the economic growth does not remain concentrated in a few hands. In other words, to remove poverty it is necessary to remove the inequality of income and wealth. This can be achieved by means of legislative and fiscal measures. Legislative measures includes such measures as Minimum Wages Act, Minimum Support Price, Right to Education, etc. Such measures raise the income earning capacity of the people and improve their standard of living. On the other hand, fiscal measures comprise of the taxation and subsidy measures of the government. High rate of taxes can be levied on the high income group while the poor are granted subsides. In this sense, the purchasing power is transferred from the rich to the poor. Similarly, pensions, scholarships, grants, etc. can be granted to the poor. Both the legislative as well as fiscal measures aim at encouraging egalitarian society and reducing poverty.

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