What are the Components of a Revenue Budget?
By BYJU'S Exam Prep
Updated on: September 13th, 2023
The components of a Revenue Budget are Government revenue and expenditure. Spending and revenue from taxes and other sources make up the budget’s income component, which is also known as government revenue. Tax and non-tax revenues are separated from total revenues. The government’s spending and income from taxes and other sources are referred to as revenue receipts and make up the revenue budget.
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Components of Revenue Expenditure
Tax revenues include income tax, excise duties, corporate tax, customs duties, and government levies. Interest from loans, dividends from investments, fees, and other income make up Non-Taxed Income. Corporate income tax is the government’s largest source of income.
Public and private companies registered under the Companies Act, 1956, are subject to this tax. It is levied on the net income of the company.
- A significant portion of the revenue comes from fuel taxes and income tax surcharges and fees.
- Included in non-tax revenue is recurring income from sources other than taxes. They consist of interest income from loans made by various agencies, such as the railways, PSUs, dividends, and profits from public sector businesses.
- Disinvestment from businesses where the government owns a stake also contributes to this receipt.
Summary:
What are the Components of a Revenue Budget?
Government revenue and expenditures make up a revenue budget. The income part of the budget, also known as government revenue, consists of spending and revenue from taxes and other sources. A differentiation of tax and non-tax revenues is made while considering the total revenues.
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