Public Revenue: Tax Revenue and Non-Tax Revenue

Public Revenue refers to all the income received by the government from all sources during a given period. It is broadly divided into two categories.

Tax Revenue consists of compulsory payments made by individuals and firms to the government, for which there is no direct, identifiable benefit given back in return (no direct quid pro quo). Tax revenue is further split by how the tax burden falls:

• Direct Taxes — levied directly on the income or wealth of a person, and the burden (impact and incidence) falls on the same person who pays it; it cannot easily be shifted to someone else. Examples: Income Tax (on individuals' income) and Corporate Tax (on companies' profits).
• Indirect Taxes — levied on goods and services; the person who initially pays the tax to the government (impact) can shift the burden (incidence) to someone else, typically the final consumer, through the price of the good. Examples: Goods and Services Tax (GST) and Customs Duty (on imports/exports).

Non-Tax Revenue consists of income the government receives from sources other than taxes — where, unlike a tax, there is often some direct service or benefit rendered in return. Examples include fees (e.g., court fees, registration fees, for a specific service rendered), fines and penalties (for violation of law), interest receipts (on loans given by the government), profits and dividends from public sector undertakings, and grants-in-aid received from other governments or international bodies.