Identify from the following, the three functions that operate through the expenditure and receipts of the government are ......

Option 1 -> Uses 'Distribution' instead of 'Redistribution' - not the standard terminology.

Option 2 -> Uses 'Reallocation' instead of 'Allocation' - incorrect term.

Option 3 -> Uses 'Equilibrium' which is not one of the three functions of government.

Option 4 -> Contains all three correct functions: Allocation, Redistribution and Stabilisation.

Hence, Option 4: Allocation, Redistribution and Stabilisation -> According to Richard Musgrave's theory of public finance, the three main functions of government that operate through expenditure and receipts are: (1) Allocation function - efficient allocation of resources to provide public goods and correct market failures, (2) Redistribution function - redistribution of income and wealth through progressive taxation and transfer payments to achieve equity, and (3) Stabilisation function - maintaining economic stability, full employment, and controlling inflation through fiscal policy measures. -> correct