Government needs to perform various inthe field of political ,social and economicactivities to maximize social and economicwelfare . In order to perform these dutiesand functions government require largeamount of resources . This resources arecalled Public Revenues .
Reveue sources of central govt TAX TAX NON-TAX CAPITAL REVENUE REVENUE REVENUE RECEIPTSDIRECT INDIRECTTAXES TAXES
Tax revenue is the income that is gained bygovernments through taxation. •Direct taxes •Indirect taxes
The term direct tax generally means a taxpaid directly to the government by thepersons on whom 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 burdencan be shifted to others. The tax payers is notthe tax bearer. The impact and incidence ofindirect taxes are on different persons. Anindirect tax is levied on and collected from apersons who manages to pass it on to someother person or persons on whom the realburden of tax falls. For eg. commodity taxesor 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 collectivelycalledas non-tax revenues. Thus, revenues mobilized from sources other than taxes are callednon-tax revenue. Central Government mobilized Rs. 1,02,378 crore from this source during2007-08 (BE). The sources of non –tax revenue are explained below. Non-tax revenue has 12percentshare in the total revenue of central government. The expected revenue from his sourcein2010-11 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 percent (2009-10). The revenue mobilized from tax and non tax sources is called revenuereceipts and it constitutes the most important part of central budget.