Option 1 -> Reallocation of resources refers to shifting resources between sectors, not targeted welfare transfers.
Option 2 -> Regional equality focuses on reducing disparities between different geographical areas, not demographic groups.
Option 3 -> Redistribution of income involves transferring income from higher-income groups to lower-income groups to reduce inequality.
Option 4 -> Economic instability cannot be an objective; governments aim for stability, not instability.
Hence, Option 3: Redistribution of income -> Cash transfers to senior citizens and widows represent direct benefit transfers (DBT) to economically vulnerable sections of society. These measures are designed to reduce income inequality by transferring resources from the general tax base to those with limited or no income sources. This is a classic tool of fiscal policy aimed at achieving social justice and reducing the gap between rich and poor, which is a key objective of redistribution of income. -> correct