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ii. What reason could be given for trying to spread the tax base?
(1 mark)

Q7. State two reasons why it is important for governments to budget carefully?
(1 mark each)
i.
ii.

Q8. Give one example of when a government could be justified in deliberately planning for a budget deficit.
(1 mark)

Q9. Describe one problem that could occur if a government's budget surplus was allowed to continue and grow over a long period of time.
(1 mark)



Answer :

GinnyAnswer

Final answer:

Spreading the tax base has benefits such as reducing inequity, enhancing stability, and promoting economic growth.


Explanation:

Reasons for Spreading the Tax Base:

Spreading the tax base helps reduce the burden on specific groups or industries, making the tax system more equitable. It also enhances stability by diversifying revenue sources, reducing reliance on a single tax type. Additionally, spreading the tax base can promote economic growth by creating a more predictable environment for businesses.


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