Q.What are the sources of Public revenue ?

Public revenue is the income of the government. Its sources fall into two groups: tax revenue (direct taxes like income and corporate tax, and indirect taxes like GST, customs and excise) and non-tax revenue (fees, fines and penalties, prices of public services, interest and profits of public enterprises, gifts, grants and special assessments).

Meaning

Public revenue refers to the income received by the government from all sources to meet its expenditure on administration, defence, development and welfare. It is a major part of public finance.

Sources of public revenue

A. Tax revenue: A tax is a compulsory payment to the government with no direct quid pro quo (no direct return). It is divided into:

• Direct taxes — borne by the person on whom they are levied, such as income tax, corporate (company) tax and wealth tax.
• Indirect taxes — levied on goods and services and ultimately paid by the consumer, such as Goods and Services Tax (GST), customs duty and excise duty.

B. Non-tax revenue: Income that the government earns from sources other than taxes, such as:

• Fees — payments for a service rendered, like court fees and registration fees.
• Fines and penalties — payments imposed for breaking the law, meant to discourage offences.
• Prices of public goods and services — charges for services supplied by the government such as railways, postage and electricity.
• Interest and dividends / profits — earnings from loans advanced by the government and profits of public sector enterprises. …