This document discusses public revenue sources for governments. It classifies revenue sources into tax revenue and non-tax revenue. Tax revenue includes direct taxes like income tax and indirect taxes like sales tax. Non-tax revenue comes from sources like profits from public sector undertakings. The document outlines various canons of taxation and analyzes the merits and demerits of direct and indirect taxes. It also provides data on tax collection in India from 1990-1991 to 2012-2013 and shows the increasing trend in tax revenue collection over time.

1. PUBLIC REVENUE
PUBLIC FINANCE
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2. TABLE OF CONTENTS
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 INTRODUCTION
 CLASSIFICATION
 TAX REVENUE
 CANONS OF TAXATION
 DIRECT TAXES
 MERITS AND DEMERITS
 INDIRECT TAXES
 MERTIS AND DEMERITS
 NON TAX REVENUE
 TAX COLLECTION
 GRAPHICAL REPRESENTATION
 BIBLIOGRAPHY

3. INTRODUCTION
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 Government needs to perform political, social and economic
duties so as to maximize social and economic welfare. In order
to perform these duties and functions government requires
large amount of resources .
 These sources of revenue to the governments, viz.
Central, State and Local Governments, are called Public
Revenues.
 Development of agriculture, industries &
infrastructure, defense, maintenance of law &
order, conducting elections, serving public debt & any
unforeseen expenses.

4. CLASSIFICATION
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Public
Revenue
Tax
Revenue
Direct
Taxes
Income Tax, Wealth
Tax, Corporate Tax, Capital
Gains Tax, Gift
Tax, Securities Transaction
Tax, Estate Duty, Perquisite
Tax, Etc
Indirect
Taxes
Sales Tax, Service
Tax, VAT, Customs & Octroi
Duty, Excise
Duty, Professional
Tax, Municipal
Tax, Entertainment
Tax, Education Cess, Etc
Non Tax
Revenue
Profits from
PSU, Administrative
Fees, Fines &
Forfeitures, Hidden
Resources, Escheats, Financial
Aid, Public Debt, Capital
Gains Fund

5. TAX REVENUE
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 Tax is a compulsory contribution of the wealth of a person
that is to say, it involves a sacrifice on the part of the
contributor.
 Tax Revenue is the income gained by governments through
taxation.
 Who is required to pay tax?
Ans: There is a saying that only two things in life are certain:
Death and Taxes. Every individual pays tax, either directly or
indirectly. This implies that the burden of taxation is on
anyone and everyone.

6. CANONS OF TAXATION
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 Canon of Equity
 Canon of Certainty
 Canon of Convenience
 Canon of Economy
 Canon of Productivity
 Canon of Simplicity
 Canon of Elasticity
 Canon of Diversity

7. DIRECT TAX
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 Direct tax is a tax imposed and collected directly from person
on whom it is legally imposed.
 The burden of it falls on one person and cannot be shifted to
another person.
 Income Tax, Wealth Tax, Corporate Tax, Capital Gains
Tax, Gift Tax, Securities Transaction Tax, Perquisite
Tax, Estate Duty are Direct Taxes.

8. MERITS V/S DEMERITS OF DIRECT TAXES
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MERITS DEMERITS
Just and Equitable
Progressive
Elastic
Productive
Anti-Inflationary
Effective
Certain
Arbitrary
Unpopular
Inconvenient
Evasion
Uneconomical
Narrow Base
Tax on Honesty

9. INDIRECT TAXES
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 Indirect Tax is collected by an intermediary from the person who
bears the ultimate burden.
 An indirect tax is one that can be shifted by the taxpayer to
someone else.
 Sales Tax, Service Tax, Value Added Tax (VAT), Customs and
Octroi Duties, Excise Duty, Professional Tax, Municipal
Tax, Entertainment Tax, Education Cess, Etc. are Indirect Taxes.

10. MERITS V/S DEMERITS OF INDIRECT TAXES
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MERITS DEMERITS
Convenient
No Tax Evasion
Broad Tax Base
Social Value
Economical
Effective
Progressive
Unjust
Inflationary
Uncertain
Savings Affected
Not Economical
No Link
Inequitable

11. NON TAX REVENUE
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 Non Tax Revenue includes all revenues other than
taxes, accruing to the Government.
 Revenues mobilized from sources other than taxes are called
Non-Tax revenue.
 Profits from PSU, Administrative Fees, Fines &
Forfeitures, Hidden Resources, Escheats, Financial Aid -
Gifts, Indemnities, Public Debt, Capital Gain Fund are Non
Tax Revenues.

12. TAX COLLECTION
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Particulars 1990-91 2000-01 2010-11 2011-12 2012-13
A) Tax Revenue 87723.28 305320.24 1271665.35 1475032.29 1751123.51
1) Direct Taxes 12260.11 71763.57 450822.09 507888.09 578364.02
2) Indirect Taxes 75463.17 233556.67 820843.26 967144.20 1172759.49
B) Non Tax
Revenue
12286.78 49361.79 266926.13 178693.09 226891.32
Rs. In Crores
In Crores

13. GRAPHICAL REPRESENTATION
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87723.28
305320.24
1271665.35
1475032.29
1751123.51
12286.78
49361.79
266926.13
178693.09
226891.32
1990-91 2000-01 2010-11 2011-12 2012-13
Public Revenue
Tax Revenue Non Tax Revenue

14. CONCLUSION
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 Revenue earned by the government is used to incure
developmental and non-developmental expenses.
 Government should design ways to develop multiple sources
of revenue to reduce dependence on any one.
 A just and fair tax system should be designed keeping in mind
both Smith’s as well as Modern Canons of Taxation.
 A good tax system is required for the over all development
of any economy.

15. BIBLIOGRAPHY
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WEB BASED
 Ministry of Finance, Govt. of India: www.finmin.nic.in
 Income Tax Dept. : www.incometaxindia.gov.in
BOOK BASED
 Public Revenue – By Prof. S.N.Chand
 Macro Economics – By Prof. Michael Vaz

16. THANK YOU
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