What are the sources of Public Revenue?

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Q. What are the sources of Public Revenue?

Telangana TsbieTSBIE Telangana Intermediate (1st Year) Commerce Board 2022Subjective· 5mImportance★★★★★

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Public Revenue (government income) has two broad sources: TAX revenue and NON-TAX revenue. Tax revenue comes from direct taxes (income tax, corporation tax, wealth tax) and indirect taxes (GST, customs duty, excise duty). Non-tax revenue comes from fees, fines and penalties, prices charged for government goods and services, profits of public sector enterprises, interest and dividends on government investments, special assessments, and grants and gifts. Together these finance government expenditure.

Meaning

Public Revenue refers to the total income received by the government from all sources to meet public expenditure. It is broadly divided into tax revenue and non-tax revenue.

Sources of Public Revenue

A. Tax Revenue: compulsory payments to the government without a direct quid pro quo.

Direct Taxes: taxes whose burden cannot be shifted, paid directly by the person on whom they are levied — e.g. income tax, corporation (corporate) tax, wealth tax.
Indirect Taxes: taxes whose burden can be shifted to others, levied on goods and services — e.g. Goods and Services Tax (GST), customs duty and excise duty.

B. Non-Tax Revenue: income the government earns from sources other than taxes.

Fees: payments for a specific government service, e.g. court fees, licence fees, registration fees.
Fines and Penalties: amounts charged for breaking laws; their aim is mainly to discourage offences, not to earn revenue.
Prices of Public Goods and Services: charges for goods and services sold by the government, e.g. railway fares, postal charges, electricity and water charges.
Income from Public Enterprises (Profits): profits earned by public sector undertakings and government-owned companies. …

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The New Economic Policy was announced in July 1991.

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

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$Q. Fill in the blank: Amount of income and expenditure is ______ in Balance budget.$
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In a balanced budget, estimated income and expenditure are equal.

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$Q. A Government Budget is -$
(a) a statement of revenue and expenditure of the Government for a year.
(b) a statement of Tax Revenue.
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(a) a statement of revenue and expenditure of the Government for a year.
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Correct option: (A) a statement of revenue and expenditure of the Government for a year.

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←Previous chapterCh 9Determination of Income and Employment

Q.What are the sources of Public 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

Meaning

Sources of Public Revenue

Q.What are the sources of Public Revenue?

Meaning

Sources of Public Revenue

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