Question

Identify the different types of Policy Instruments available to a country. How would you choose which instruments to recommend a Government to use in implementing their National Transport Policy? Why?

Answer 1

Policy instruments are basically tolls or techniques used by the government or public authorities to achieve their objective and which mainly are the policy objectives or goals. Some examples of such tools are Taxes used by the government in the form of indirect and direct taxes, Legal reforms, Regulations, Other spending initiated by the government etc.

For a National Transport Policy the government will choose such instruments that will help in achieving the transport goals and help in better transportation policies. These such instruments help in forming a startegy that help in achieving the desired objective.

Government can make policies regarding the vehicles used for transportaion and implementing tax reforms, the government can also collect taxes from toll installed on national highways, Higher taxtion on fuels used can be put to gain the policy goals.

If these policy instruments are used it will help the government in achieving their objective and will be able to collect funds for the betterment of national transportation system.