Government revenue refers to all the income of the government from taxes and non-tax sources. These funds are used for government expenditure. Government revenues and spending are an important part of fiscal policy of the government.
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Revenue refers to all the receipts of the government from taxes, custom duties, revenue from state-owned enterprises, capital revenues and foreign aid.
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Revenue is generated from mainly two types of sources:
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Tax revenue: Taxes on incomes of individuals and corporations and also on the goods and services produced.
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Non-tax revenue: Dividends from state-run companies, central bank revenue and capital receipts in the form of external loans and debts from international financial institutions.
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India’s total revenue in the April-November quarter of FY20 increased 12.9 per cent to Rs 10.12 trillion. It was 8.97 trillion in the same period in FY19.
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Government revenues averaged Rs 3.09 trillion from 1997 until 2019, touching an all-time high of Rs 16.66 trillion in March 2019.
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