there is a wide gap between the rich and poor in our economy. how can the government budget be used as on instrument to reduce this gap Share with your friends Share 0 Shriram answered this Government uses its fiscal instruments like taxes and subsidies to bridge the gap between rich and poor. 3 View Full Answer Princess Kaur (prabhjot Kaur) answered this govt use its collection of taxes on poor people instead of their own profit. 2 Arjun Pal answered this Chnchvd 0