Write the meaning of tax revenue and non-tax revenue.

Question of 54

Q. Write the meaning of tax revenue and non-tax revenue.

Nagaland NbseNBSE Nagaland Intermediate Board Exam (Commerce) 2021Subjective· 2mImportance★★★★★

0% · 0/54 Questions

🔒 Locked · start free trial →

You're viewing a preview — the full solution, concept, methods & PYQ mapping are locked.

Start your 14-day free trial to unlock the full solution →

Tax revenue comes from compulsory taxes; non-tax revenue comes from everything else the government earns (fees, fines, PSU profits, interest).

Tax revenue: income the government collects through taxes, a compulsory contribution imposed under the authority of law, with no direct benefit given in return to the specific payer. It includes:
- Direct taxes — levied on income/wealth of individuals and firms (e.g. Income Tax, Corporate Tax), whose burden cannot be shifted to someone else.
- Indirect taxes — levied on goods and services (e.g. GST, customs duty), whose burden can be shifted from the person who pays it initially to someone else (e.g. the consumer).
Non-tax revenue: income of the government from sources other than taxes, generally in return for some specific service or as a return on government assets. It includes:
- Fees (e.g. registration fees, licence fees), fines and penalties.
- Profits and dividends from Public Sector Undertakings (PSUs). …

Start your 14-day free trial to unlock the full solution →

Same / Similar Concept — real previous-year questions on the same or a closely similar concept, not this exact question.

CBSE 2026Set ANNUAL1 mark
$Q. Write the answer in one sentence: What is balanced budget?$
›Reveal solutionSolution

Balanced budget: estimated receipts = estimated expenditure (no surplus or deficit).

A balanced budget is one in which the government's estimated receipts are exactly equal to its estimated expenditure for the financial year. There is neither a budget surplus (receipts greater than expenditure) nor a budget deficit (expendit …

Start your 14-day free trial to see the full solution →
CBSE 2024Set ANNUAL1 markMCQ
$Q. In response to the economic crisis, the Government of India introduced a "New Economic Policy", _______.$
(a) (A) In April, 1991
(b) (B) In May, 1991
(c) (C) In June, 1991
(d) (D) In July, 1991
(a) (A) In April, 1991
(b) (B) In May, 1991
(c) (C) In June, 1991
(d) (D) In July, 1991
›Reveal solutionSolution

The New Economic Policy was announced in July 1991.

Facing a severe balance-of-payments and fiscal crisis in 1991, the Government of India (under Finance Minister Dr. Manmohan Singh) announced the New Economic Policy (NEP) in July 1991, launching the era of Liberalisation, Privatisation and Globalisation (L …

Start your 14-day free trial to see the full solution →
CBSE 2024Set ANNUAL1 mark
$Q. State the major steps taken by the Government of India towards liberalization under the reforms period.$
›Reveal solutionSolution

Industrial delicensing + reduced PSU reservation + disinvestment.

Under the reforms begun in 1991, the Government of India took several steps towards liberalisation: it abolished industrial licensing for all but a handful of industries, reduced the number of industries reserved exclusively for the public sector (from 17 to a very small list), permitted automatic approval for foreign technology agreements and foreign investment in many industries, and began disinvestment of its equity in public sector undertakings to raise resources and improve efficienc …

Start your 14-day free trial to see the full solution →
CBSE 2023Set ANNUAL1 markMCQ
$Q. Non-tax revenue is -$
(a) Income tax
(b) Corporate tax
(c) Dividend
(d) Debt (borrowings)
›Reveal solutionSolution

Non-tax revenue is the Dividend — option (c).

Non-tax revenue consists of revenue receipts of the government that do not arise from taxes — for example, dividends and profits from public-sector undertakings, interest receipts, fees, fines and external grants. Income tax (a) and corporate tax (b) are tax revenue, while debt …

Start your 14-day free trial to see the full solution →
CBSE 2022Set ANNUAL1 mark
$Q. Fill in the blank: Amount of income and expenditure is ______ in Balance budget.$
›Reveal solutionSolution

In a balanced budget, estimated income and expenditure are equal.

A balanced budget is a budget in which the government's estimated receipts (revenue) are exactly equal to its estimated expenditure for the financial year. There is neither a surplus nor a defi …

Start your 14-day free trial to see the full solution →
CBSE 2022Set ANNUAL1 markMCQ
$Q. A Government Budget is -$
(a) a statement of revenue and expenditure of the Government for a year.
(b) a statement of Tax Revenue.
(c) a statement of Non-Tax Revenue.
(d) a statement of residual of Revenue and Expenditure.
(a) a statement of revenue and expenditure of the Government for a year.
(b) a statement of Tax Revenue.
(c) a statement of Non-Tax Revenue.
(d) a statement of residual of Revenue and Expenditure.
›Reveal solutionSolution

Correct option: (A) a statement of revenue and expenditure of the Government for a year.

A Government Budget is an annual financial statement showing the government's estimated receipts (revenue receipts and capital receipts, including tax and non-tax revenue) and estimated expenditure for a financial year (1 April to 31 March in India). Option (B) and (C) each describe only one component of revenue, not the whole budget, and option (D) describes only the fiscal balance (deficit/surplus), …

Start your 14-day free trial to see the full solution →

←Previous chapterCh 4Determination of Income and Employment

Q.Write the meaning of tax revenue and non-tax revenue.

Concept understanding — Government Budget Receipts (Revenue and Capital Receipts)

Two Kinds of Money the Government Takes In

Revenue Receipts — Regular, No Strings

Capital Receipts — Debt or Sold Assets

The Simple Decision Rule

Q.Write the meaning of tax revenue and non-tax revenue.

🎓Unlock everything free for 14 days

Unlock everything free for 14 days