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The income of the government through sources like taxes, borrowing, fees, and donations, etc, is government revenue. However, proof Dalton has defined the term into senses-board and narrow senses.

Public money
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In the narrow sense, public revenue included only those receipts which are included in the ordinary conception of revenue. It included the revenue tax revenue, interest receipts, dividends and profit of government Enterprises, fees, fines, gifts, and grants.

In the broad sense, public revenue includes all the incomes or receipts. It includes receipts from public borrowings and the sale of public assets.

Sources of Government Revenue

The government has to perform various socio-economic activities to achieve economic stability, high economic growth, economic development, and law and order in the country. In order to carry out this function, the government has to collect a large amount of revenue from various sources. The sources of government revenue are classified into tax revenue and non-tax revenue.

A. Tax revenue

Tax revenue is the major source of government revenue. A major portion of the government revenue is collected from this sector. the following sources are included under tax revenue.

1. Customs duty: This includes import and export taxes imposed by the government on foreign trade. This is a very important source of government revenue.


2. Internal goods and services tax: Under this, taxes are like excise duty, sales tax, value-added tax, entertainment tax, vehicles tax, toll tax, etc. Included.


3. Land and property tax: This includes land tax, land registration fee, house tax, etc. The government collects a large sum of money through land and property taxes.


4. Income tax: under Income Tax, income is on by citizens and businesses from the country.

B. Non-tax revenue

Non-tax revenue included the following sources of government revenue.

1. Commercial revenue: Income earned from the business establish and run by the government comes under commercial revenue. Income earned from Janakpur cigarette factory, Nepal Airlines Corporation Nepal electricity authority, Nepal Telecom, etc are included under this.


2. Fees Licence and Permits: Fees means the revenue collected by the government from the services provided by it in the field of education, training, and registration. the government also collects revenue from the distribution of licenses. The government also collects revenue by giving permission for the Mountaineering expedition, national parks visits, and historical and religious places visits.


3. Fines and penalties: Finds is a monetary publishment imposed for the violation of law and order. The amount to be paid for the violation of bail and bond is the penalty. These are undesirable sources of government revenue.


4. Escheat: The claim of government on the property on the death of a person who does not have legal inheritance is called Escheat. Likewise, the Bank deposit not claimed by anybody or the property of the dissolved organization also goes to the government. Similarly, the property created by the government also falls under escheat.


5. Special Assessment or betterment Levy: Some public improvements search as the construction of road or sewerage, Bridge, etc. Benefit the residents of the area. The charge on the property or Radiance benefitted from such improvement is called special assignment or betterment levy. A special assessment is Partially compulsory and partially voluntary. Since it is compulsory, it is like a tax. But since is imposed for the special benefit received, it is different from tax.


6. Public Borrowings: A loan taken by the government from different sectors is known as public borrowing. The internal loan is taken from the citizen's firms and Businessmen of the country.

The above-mentioned sources of public revenue arising from internal sources. There are external sources of government revenue to which are given below:

a. External loan: The external loan is the type of loan which can be taken from the international Institution and governments of other countries. it must be paid back after sometimes with interest

b. Gifts and grants: The money received by a government from other governments without any obligation is known as grants. Developing countries receive grants from developed countries. Money got from the grant need not be paid back. So, for developing countries, it is considered an important source.

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