sources of government or public revenue

/ topical index posts / By

sources of government or public revenue, Government (or public) revenue may be defined as the total income that accrues to all levels of administration (local, state and federal) or government from various sources. \"sources

Government or public revenue includes capital revenue (or receipts) and recurrent revenue sources of government or public revenue

There are several sources of government or public revenue that governments use to fund their operations and provide public services. The specific revenue sources can vary between countries, but here are some common ones:

Taxes: Taxes are the most significant source of government revenue. They can include income taxes, corporate taxes, sales taxes (also known as value-added taxes or VAT), property taxes, capital gains taxes, and various other types of taxes.

Customs Duties: Governments collect customs duties or tariffs on imported goods and services. These duties are typically based on the value or quantity of the imported goods and are intended to protect domestic industries or generate revenue.

Excise Taxes: Excise taxes are specific taxes imposed on certain goods and services such as alcohol, tobacco, gasoline, luxury goods, and gambling. These taxes are often used to discourage the consumption of certain products and generate revenue simultaneously.

Fees and Licenses: Governments charge fees for specific services or licenses. These can include fees for obtaining driver\’s licenses, professional licenses, permits, and registrations, as well as charges for services like vehicle registration, passport application fees, and park entrance fees.

Natural Resource Revenues: Countries that possess significant natural resources often generate revenue through their extraction. This can include revenues from oil, gas, minerals, timber, and other natural resources. Governments typically collect these revenues through taxation, royalties, or production-sharing agreements with companies involved in resource extraction.

User Fees: Governments collect user fees for using certain public services or facilities. Examples include fees for using public transportation, tolls on highways and bridges, parking fees, and charges for public utilities like water and electricity.

Dividends and Profits: Some governments own shares in public enterprises or corporations and receive dividends or profits from their investments.

Types of public revenue

  1. Capital revenue (or receipts): Capital receipts, also called irregular or extraordinary sources of revenue, are sources of revenue used for meeting expenditure on heavy capital projects, e.g. grants, loans and transfers from current revenue.
  • Recurrent revenue: Recurrent revenue is a regular source of revenue in which income is received on a regular or yearly basis, e.g. taxation, fees and licenses, fines and interests on loans.// sources of government or public revenue

     SOURCES OF GOVERNMENT REVENUE

  1. Taxes: Taxes include both direct and indirect taxes. Government generates income or revenue by taxing individuals and corporate bodies,
  2. Loans: Government can obtain loans from both the internal and external sources, e.g. the World Bank.
  • Grants and aids: Government can receive grants and aids as revenue from wealthy or developed countries. sources of government or public revenue
  • License: Government can receive revenue through license , e.g. driver’s license
  • Savings: Government can also generate revenue through savings, especially when a country has budget surplus.

check out these recent posts


Related Posts

Optimized by Optimole
Scroll to Top