Direct Tax Revenue for Infrastructure and Social Welfare: Funding Public Services for Development
Dr. Kiran Kumar M1, S Sofia 2, Shaik Gulshan 3, Tulsi Vajpayee M 4
Assistant Professor - Finance1, MBA Finance Students 2 3 4
Faculty Of Management Studies,
CMS Business School, Jain (deemed to be university)
Kiranm287@gmail.com, sillasofia2003@gmail.com,
Abstract
The purpose of this research paper is to thoroughly examine the application of direct tax collection in supporting public development initiatives and essential government services. Specifically, the study focuses on two significant areas: infrastructure development and social welfare programs. It highlights the vital role that revenue generated through direct taxation plays in funding activities such as the construction and maintenance of roads, public transport systems, energy distribution, water supply networks, and other public utilities. These investments are not only crucial for improving day-to-day living standards but also serve as powerful drivers of economic growth by enhancing connectivity, enabling smoother trade and commerce, and stimulating regional development. Infrastructure expansion directly contributes to job creation, raises national productivity, and lays the foundation for sustainable, long-term development.
In addition to infrastructure, the paper also explores how direct taxation is used to finance social welfare programs, including unemployment benefits, pension schemes, food subsidies, and healthcare support. These programs are critical in ensuring a fair distribution of income and promoting economic stability, especially among vulnerable populations. By providing financial security and access to basic needs, social welfare initiatives help to reduce economic inequality and promote social cohesion. The study emphasizes that a well-designed tax system not only serves as a source of public revenue but also acts as a tool for social justice and inclusive economic development.
Keywords:
Direct taxation, public finance, economic development, infrastructure expansion, social welfare programs, government income
