• Mrs. Alpna Yadav
• Dr. Manju Yadav

Over the last forty years, rising national income has helped reduce poverty rates, but this has been accompanied by an increase in economic inequality. This paper examines the relationship between public policies and economic inequality. It shows that public policies have a significant and large effect on inequality. One influence is through redistribution, as fiscal policy affects the distribution of disposable income through progressive direct taxation and through social benefits. This effect is captured by a single comprehensive variable, which is public expenditures as percent of GDP. Public policy affects the distribution of market incomes as well, through public education, through hiring to the public sector, through building infrastructure and through labour market regulation. Increasing economic inequality has become a cause of concern for the developing countries like India, where economic growth and income inequality go hand in hand. India recorded tremendous economic growth after liberalization but unfortunately, the benefit of growth was not distributed equitably. Government policies are also responsible for increasing income inequality.

GDP, inequality, taxation and developing countries.

"Government Policies to reduce income inequality in India.", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.10, Issue 10, page no.e37-e47, October-2023, Available :http://www.jetir.org/papers/JETIR2310318.pdf

"Government Policies to reduce income inequality in India.", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.10, Issue 10, page no. ppe37-e47, October-2023, Available at : http://www.jetir.org/papers/JETIR2310318.pdf