Answers To The Question: What Is Public Revenue?
PUBLIC REVENUE – In this article, we will learn about what public revenue is, its importance and its significance.
In summary, this is is all the income the government receives through all sources. Sometimes, it’s also called the public income.
Based on an article from YourArticleLibrary, the term “Public Income” has two senses. These are wide and narrow.
As per the article, the wider sense meant that it included all incomes or receipts that a public figure can secure at any given time. However, It’s Narrow sense only includes those sources of income of the public authority.
These are better known as revenue resources. In order to avoid ambiguity, it was known as public receipts and revenue resources as “public revenue”.
With this, receipts from government borrowing and sales of assets are excluded from it. In a modern welfare state, public revenue is of two types, tax revenue, and non-tax revenue.
Tax Revenue – These are funds raised through various taxes called tax revenue. These are compulsory contributions by the government on its citizens.
These are collected as contributions for its general expenses incurred for the common good. This is done without any corresponding benefit to the taxpayer.
Non-Tax – These are public income gathered through the administration, commercial enterprises, gifts, and grants.
With this, non-tax revenue includes:
- Administrative Revenue
- Profit from state enterprises
- Gifts and Grants
Administrative – Public authorities can raise funds in the form of fees, fines, and penalties along with special assessments.
Profits from state enterprises – These are an important source of revenue. This is from the expansion of the public sector.
Gifts and Grants – These form generally a very small part of the revenue. Oftentimes, patriotic people or institutions may make gifts to the state. These are purely voluntary contributions.
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