Concept of Government Revenue
The income of government from all sources is generally called government revenue or receipt. But Dalton has defined public income in a broad and narrow sense as public receipt and public revenue. Accordingly, public receipt includes all incomes of the government. Whereas, public revenue includes income from taxes, prices of goods and services supplied by enterprises, revenue from administrative services and gifts and grants.
According to Sundharam & Andley, public revenue may be categorized as:
(i) Revenue based on compulsion
- Taxes
- Fines for offences committed;
- Compulsory loans, generally raised during war and
- Tributes and indemnities arising out of war (or for other reasons) from defeated nations (as imposed on Germany after First World War)
(ii) Revenue on voluntary payment
- Income from public property as royalty
- Receipts from public enterprises
- Fees for administrative services and
- Voluntary public loans.
(iii) Revenue based on partly compulsion and partly voluntary
- Income from public enterprises using monopoly power
- Betterment levy
- Income from issue of fresh currency and
- Voluntary gifts.
However, government revenue generally includes Tax revenue and Non-tax revenue.
Tax-revenue
- Customs duty
- Taxes on production and consumption of goods and services (excise and VAT)
- Taxes on income, profit and property and
- Taxes on property transfer registration
Non-tax Revenue
- Fees, fines, forfeiture and escheat
- Income from sale of government services
- Royalty & sale of public assets/property
- Dividend
- Principal and interest receipt
- Money creation
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