Government needs resources to perform political, social, and economic activities to maximize welfare. It obtains resources through public revenues, which come from tax revenue and non-tax revenue. Tax revenue includes direct taxes like income tax paid directly to the government by taxpayers, and indirect taxes like sales tax where the burden is passed on to consumers. Non-tax revenue sources include profits from public enterprises, railways, postal services, the Reserve Bank of India, and income from currency and mint. Together, tax and non-tax revenues make up the central government's primary source of funding.

2. 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 .

3. Reveue sources of central govt
TAX
TAX NON-TAX CAPITAL
REVENUE
REVENUE REVENUE RECEIPTS
DIRECT INDIRECT
TAXES TAXES

4. Tax revenue is the income that is gained by
governments through taxation.
•Direct taxes
•Indirect taxes

5. The term direct tax generally means a tax
paid directly to the government by the
persons on whom it is imposed.

8. •Tax Evasion
•Inconvenient
•Narrow Coverage
•Affects Capital Formation
•Effects on Willingness and Ability to Work

9. * 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.

10. *Central Excise Duties
•Customs Duties
•Service Tax
•Other Taxes and Duties
•Taxes of Union Territories

11. •Universality
•Influence on Pattern of Production
•Wide Coverage
•May not affect Motivation to Work and Save
•Social Welfare

12. • High cost of Collection
•Increase Income Inequalities
•Lack of Social Consciousness
•Affects Consumption
•Inflationary

13. Non-tax revenue:
The union government gets revenue from other sources as well. They are collectively
called
as 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
percent
share in the total revenue of central government. The expected revenue from his source
in
2010-11 is 11 percent.
1. Public enterprises:
The central government owns a large number of commercial and industrial
establishments. When the earn profits, it will become the revenue of the central
government. In 1950-51 it accounted for Rs.23 crore and it went up to Rs.
18,969
crore.

14. 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

15. 6. Income from currency and mint :
Non tax revenue has been steadily increasing. For instance , in 1950-51, it accounted
for 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 revenue
receipts and it constitutes the most important part of central budget.