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.
Government or public revenue includes capital revenue (or receipts) and recurrent revenue sources of government or public revenue
Types of public revenue
- 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
- Taxes: Taxes include both direct and indirect taxes. Government generates income or revenue by taxing individuals and corporate bodies,
- 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.
- Rents and rates: Earnings from water, properties, housing, etc owned by the government are sources of income to the government.
- Fines, fees and royalties: Government can generate revenue through court fees mining companies and postage charges. source of government or public revenues
- Earnings from government investments: Government can also earn income from government – owned business enterprises or from joint ventures.
check out these recent posts
- loans for businesses
- how to establish enterprises
- what is a firm
- price equilibrium
- scale of preference
- concept of economics
- economic tools for nation building
- factors affecting the expansion of industries
- mineral resources and the mining industries
- demand and supply
- types of demand curve and used
- advertising industry
- factors of production
- joint stock company
- public enterprises
- private enterprises
- limited liability companies
- market concept
- money market
- how companies raises funds for expansion