Governments impose various kinds of taxes primarily in order to achieve which of the following broad objectives?

Introduction / Context:
Taxation is one of the most important tools available to governments for financing public expenditure and influencing the distribution of income. Taxes are compulsory payments that individuals and businesses make to the state. While raising revenue is the most obvious purpose, modern tax systems also aim to reduce inequality and fund social welfare programmes. This question asks what broad objectives governments pursue when they impose taxes.

Given Data / Assumptions:

• Governments need revenue to finance administration, infrastructure, defence, education, health, and welfare schemes.
• Taxes can be designed to be progressive so that higher income groups pay a larger share, helping to reduce inequality.
• Tax revenue is often used to support weaker sections through subsidies, social security, and direct assistance.
• The options list objectives related to equity, revenue raising, social upliftment, and a combined choice.

Concept / Approach:
Classically, the primary function of taxation is to raise revenue for the government. However, modern public finance recognises multiple objectives of taxation: revenue, redistribution, and regulation. By imposing progressive taxes, the government can check excessive accumulation of wealth in a few hands and promote a more equitable distribution of income. By directing tax revenue into welfare schemes, it can uplift weaker sections. Therefore, all of the goals mentioned in the first three options are valid objectives of taxation, and the best answer is the option that combines them.

Step-by-Step Solution:
Step 1: Identify revenue raising as a core function of taxes, enabling the government to finance its operations and public services.Step 2: Recognise that taxes, especially progressive income taxes and wealth taxes, can be used to reduce inequality by collecting more from those with higher ability to pay.Step 3: Note that funds raised through taxes are often targeted toward programmes that benefit weaker sections, such as subsidies, free education, and health schemes.Step 4: Check options a, b, and c and see that each describes a valid and recognised objective of taxation.Step 5: Observe that option d states all of the above, which correctly combines these objectives.Step 6: Confirm that option e, which mentions only inflation control, is too narrow and incomplete.

Verification / Alternative check:
Public finance textbooks discuss canons and objectives of taxation, emphasising that taxes should be efficient at raising revenue, fair in their distribution of burden, and supportive of economic and social policy goals. Various government documents on tax reforms also state objectives such as improving equity, promoting growth, and providing resources for social sector programmes. These sources support the idea that taxation is not limited to a single purpose but serves multiple functions simultaneously.

Why Other Options Are Wrong:
Option a is partly correct but incomplete, as taxation is not imposed solely to check accumulation of wealth. Option b is also correct but only covers revenue raising, leaving out equity and welfare. Option c correctly notes the use of tax funds to uplift weaker sections but does not mention other important objectives. Option e is incorrect because controlling inflation is mainly a function of monetary policy and is not the primary objective of taxation, even though taxes can influence demand indirectly.

Common Pitfalls:
Some students focus only on the revenue function of taxation and forget broader social objectives. Others may think only of redistribution and ignore the need to finance day to day government operations. To avoid these mistakes, it is useful to remember that modern taxation pursues multiple goals, and exam questions often expect recognition of this broader perspective through all of the above type answers.

Final Answer:
Government imposes taxes to raise revenue, promote equity by checking excessive wealth concentration, and provide resources to uplift weaker sections, that is, all of the above.