Income Inequality or Wealth Gap – UPSC MCQ

Which of the following statements is/are correct?

  1. Income inequality or the “wealth gap” has declined in the last 10 years as per Oxfam’s Report.
  2. Windfall Tax is expected to increase the problem of unfair distribution of the resources in the economy.

Select the correct answer using the code given below:

a)1 only
b)2 only
c)Both 1 and 2
d)Neither 1 nor 2

Correct Answer



  • According to the Oxfam’s Report “Survival of the Richest: The India story”, the richest 1% in India now own more than 40% of the country’s total wealth, while the bottom half of the population together share just 3% of wealth between 2012 and 2021. Hence, statement 1 is not correct.
  • Windfall taxes are taxes imposed on unexpected or extraordinary profits, such as those made during times of economic crisis, war, or natural disasters.
  • The idea behind this is that these companies have benefited from the rising prices of food and other essentials and should contribute a fair share to help address poverty and inequality. This measure could generate revenue for governments to support social programs that help reduce poverty and inequality. Hence, statement 2 is not correct


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