public revenue

1. Public revenue
BSC AGRI 2
PAE
UNIT 4

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
REVENUE
NON-TAX
REVENUE
CAPITAL
RECEIPTS
TAX
REVENUE
DIRECT
TAXES
INDIRECT
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.

19. Source
• 1. Elementary economic theory - K.K. Dewett
and J.D. Verma
• 2. International Economics - B. Mishra
• 3. Fundamentals of Agricultural Economics -
A.N. Sadhu and A. Singh
• 4. Economics - Paul A. Samelson and W.D.
Nordhans (Pearson Publications)