In case of elecyricity which is sold by the government at a subsidizeds rate . How can the government lower ir's losses without lowering the susidy?
Dear Student,
Government can lower its losses by increasing their tax revenue from other sources. Government can charge more taxes on the sectors of the society which are more prosperous and can pay some taxes.India is a developing and for the welfare of society Indian government have to make subsidies and has to bear losses as their revenue is always less than their expenditure.At this time government takes borrowings from public.To lower its revenue without lowering its subsidies can be done by charging more taxes on the foreign companies .
Hope this information will claer you doubts.
If you have any more doubts just ask on the forum and our experts will try to help you out as soon as possible.
Regards
Government can lower its losses by increasing their tax revenue from other sources. Government can charge more taxes on the sectors of the society which are more prosperous and can pay some taxes.India is a developing and for the welfare of society Indian government have to make subsidies and has to bear losses as their revenue is always less than their expenditure.At this time government takes borrowings from public.To lower its revenue without lowering its subsidies can be done by charging more taxes on the foreign companies .
Hope this information will claer you doubts.
If you have any more doubts just ask on the forum and our experts will try to help you out as soon as possible.
Regards