General Knowledge - Indian Economy - Discussion

Here's a breakdown of the concept:

Core Idea: The benefits-received principle suggests that those who benefit most from government services should pay more for them. This is akin to paying for what you get.

Optimality: In this context, optimality means achieving an efficient level of public goods provision. If people pay directly for the benefits they receive, the amount of public goods provided can align better with what people want and are willing to pay.

Examples:
Fuel taxes: These taxes are used to fund road maintenance, aligning the cost with those who use the roads.

Hence, the answer here is D) Ability to pay for the benefit.

Ability to pay is an economic principle that states an amount of tax an individual pays should be dependent on the level of burden of tax will create relative to the wealth of the individual.

Explain the question.

I am not getting, Explain it, please.

Please explain all the options clearly.

How to achieve optimality bases?

Please explain it in detail.

Please explain the remaining options also.

What is optimality bases?

Economics concept that those who have more resources (wealth), or earn higher incomes, should pay more taxes. The ability to pay taxes (such as income tax or tax on luxury goods) are used as means of income redistribution. Also called ability to pay tax