Public revenue

BSC AGRI 2PAE

UNIT 4

Government needs to perform various in the field of political ,social and economic activities to maximize social and economic welfare . In order to perform these duties and functions government require large amount of resources . This resources are called Public Revenues .

Reveue sources of central govt

TAX REVENUE

NON-TAX REVENUE

CAPITAL RECEIPTS

TAX REVENUE

DIRECT TAXES

INDIRECT TAXES

Tax revenue is the income that is gained by governments through taxation.

•Direct taxes •Indirect taxes

The term direct tax generally means a tax paiddirectly to the government by the persons onwhom it is imposed.

•Tax Evasion

•Inconvenient

•Narrow Coverage

•Affects Capital Formation

•Effects on Willingness and Ability to Work

* An Indirect Tax is one in which the burden can be shifted to others. The tax payers is not the tax bearer. The impact and incidence of indirect taxes are on different persons. An indirect tax is levied on and collected from a persons who manages to pass it on to some other person or persons on whom the real burden of tax falls. For eg. commodity taxes or sales tax etc are Indirect Taxes.

*Central Excise Duties

•Customs Duties

•Service Tax

•Other Taxes and Duties

•Taxes of Union Territories

•Universality

•Influence on Pattern of Production

•Wide Coverage

•May not affect Motivation to Work and Save

•Social Welfare

• High cost of Collection

•Increase Income Inequalities

•Lack of Social Consciousness

•Affects Consumption

•Inflationary

Non-tax revenue:

The union government gets revenue from other sources as well. They are collectively calledas non-tax revenues. Thus, revenues mobilized from sources other than taxes are called non-tax revenue. Central Government mobilized Rs. 1,02,378 crore from this source during 2007-08 (BE). The sources of non –tax revenue are explained below. Non-tax revenue has 12 percentshare in the total revenue of central government. The expected revenue from his source in2010-11 is 11 percent.

1. Public enterprises:

The central government owns a large number of commercial and industrialestablishments. When the earn profits, it will become the revenue of the centralgovernment. In 1950-51 it accounted for Rs.23 crore and it went up to Rs. 18,969crore.

4. Railways, post and telegraphs:

Railways, post and telegraphs are owned by the central government. The profits

earned by these undertakings constitute the sources of revenue to the government.

5. Reserve bank of India :

The profits earned by the RBI of India from its operations becomes one of the important

sources of revenue to the central government

6. Income from currency and mint :

Non tax revenue has been steadily increasing. For instance , in 1950-51, it accountedfor Rs, 49 crore and in 1990-91 it was Rs,12,650 crore. It has further increased to Rs, 1,02,203 crore by 2007-08 and it was expected to go up to Rs 96,203 crore by 2008-09 .The share of non tax revenue in the total revenue of the central government is 12 per

cent (2009-10). The revenue mobilized from tax and non tax sources is called revenuereceipts and it constitutes the most important part of central budget.

Source

• 1. Elementary economic theory - K.K. Dewettand J.D. Verma

• 2. International Economics - B. Mishra

• 3. Fundamentals of Agricultural Economics -A.N. Sadhu and A. Singh

• 4. Economics - Paul A. Samelson and W.D. Nordhans (Pearson Publications)