Sources of Public Revenue
XI Economics Sources of Public Revenue
Sunday, December 29, 2019
SOURCES OF PUBLIC REVENUE
TAX
Tax is a compulsory payment by a taxpayer to the government without expectation of any direct return or benefit.
FEES
Government provides certain special services to the people and in return of these services charges fees. In fact, fee is that revenues, which is paid to the government for the special services rendered by it. Court fee, license fee and passport fee etc. fall under this category.
FINES AND PENALTIES
Fines and penalties are imposed and collected from the offenders of law as punishment. They are not imposed for the purpose of obtaining revenue but to prevent crime
SPECIAL ASSESSMENT
When the government undertakes certain public improvement programmers like construction of roads, provision of drainage, street lighting etc. in order to meet the expenses incurred the government may impose a special levy, which is called special assessment.
TAX
Tax is a compulsory payment by a taxpayer to the government without expectation of any direct return or benefit.
FEES
Government provides certain special services to the people and in return of these services charges fees. In fact, fee is that revenues, which is paid to the government for the special services rendered by it. Court fee, license fee and passport fee etc. fall under this category.
FINES AND PENALTIES
Fines and penalties are imposed and collected from the offenders of law as punishment. They are not imposed for the purpose of obtaining revenue but to prevent crime
SPECIAL ASSESSMENT
When the government undertakes certain public improvement programmers like construction of roads, provision of drainage, street lighting etc. in order to meet the expenses incurred the government may impose a special levy, which is called special assessment.
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FORFEITURES
Forfeitures are just like the penalties imposed by courts for the failure of individuals to appear in the courts, to breach the conditions of contracts etc.
GIFTS AND GRANTS
Grants form one government to another play an important role in government revenue. In a federal set up, the central government gives grants to provincial government and provincial governments give grants to the local government to carry out their function.
The consumer, who pays a higher price for an imported good on account of import duty and is not able to shift the burden to someone else, bears the incidence of the tax.
FORFEITURES
Forfeitures are just like the penalties imposed by courts for the failure of individuals to appear in the courts, to breach the conditions of contracts etc.
GIFTS AND GRANTS
Grants form one government to another play an important role in government revenue. In a federal set up, the central government gives grants to provincial government and provincial governments give grants to the local government to carry out their function.
The consumer, who pays a higher price for an imported good on account of import duty and is not able to shift the burden to someone else, bears the incidence of the tax.