What are the Sources of Public Revenue for the Government?

By BYJU'S Exam Prep

Updated on: November 9th, 2023

The major Sources of Public Revenue for the Government are Income tax, Real property taxes, Personal property taxes, or taxes of assets, Goods and Services Tax (GST), Corporation tax, Union excise duties fees, Licence fees, Surplus of the public sector units, Fine and penalties, Gifts, and grants Printing of paper money. So, there are approximately 10 major sources for the Government to collect public revenue.

Major Sources of Public Revenue for Government

Taxes are the main source of public revenue for the Government. Taxes are regarded as involuntary fees imposed on people and companies to obtain funds for government activities. Revenue receipts are of two types: non-tax revenue and tax revenue. This amount is generally charged on incomes, goods, and services by the Government.

  • It is an important concept of public finance. Public revenue is the government’s income from various sources.
  • There are two types of public revenue mentioned in Dalton in his “Theory of Public Finance”.
  • Income from taxes and goods and services of public enterprises, administrative activities such as fees, fines, etc. are included in the public revenue.
  • In contrast, all the income the government received from formal sources is incorporated in the public receipts.

The majority share of the Government revenue comes from taxes- direct and indirect; the examples of which have been mentioned above. Owing to the largest share of government revenue, taxes are the most important source.

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