Budget Decision – Welfare Planning

i Know  Budget Decision – Welfare Planning

Allocation of taxes should be done one in such a way as to produce more welfare with less sacrifice. According to 'Edgeworth' and 'Piego' the principle of distribution is better in all sacrificial formulas. According to them, the theory of utility will do more good.

The taxation system is essential to cover the cost of government services and the revenue generated by taxation should be distributed in an equitable manner. With this revenue, the tax distribution department distributes the income according to the desires of private individuals to the detriment of the welfare of each individual and distributes the income to the public welfare. According to Edward, the government should follow the principle of taxation with minimum sacrifice from the people. According to 'Pigu', government actions should be for public welfare. But according to 'Peegu' and 'Edworth' the principle of equality may lead to serious consequences in the state of maximum production. Hence the doctrine of sacrifice must be re-established.

*Wanner' included the differences between seed and social welfare in the tax formula. The social welfare principle is based on the implication that the principle of will is the priority of income distribution, and on the implication that the consequences of public institutions and market forces determine the distribution of income. According to the theory of utility, social well-being depends on the principle of equal sacrifice, but Wagner does not speak specifically about the principle of sacrifice. Purogami supported the tax.

Principles of egalitarian social welfare give less priority to public services. Hence Bygan and Dalton formulated two budgeting approaches. The first is distributional, where marginal utility must be equal to satisfaction. That is, the last rupee (tax paid) and the final satisfaction received by the individual from the last rupee should also be equal. Then marginal satisfaction is equal in public and private sectors. According to 'Dalton' the taxation system should be designed in such a way as to minimise the total direct burden. According to 'Peegu' theory, minimum aggregate sacrifice imposes a marginal burden of tax. The good of the people does not demand total sacrifice.