Government Revenue Short Definition

Comparing levels of government revenues across countries provides an indication of the importance of the government sector in the.

Government revenue short definition. The government acts like a business person and the public acts like its customers. The government also earns revenue from the production of commodities like steel oil life saving drugs etc. The revenue deficit refers to the financial position wherein the government s revenue expenditure exceeds its total revenue receipts. Government revenue as well as government spending are components of the government budget and important tools of the government s fiscal policy.

In many cases the most important of these by far is taxation. Governments acquire the resources to finance their expenditures through a number of different methods. The income that a government or. In the case of government revenue is the money received from taxation fees fines inter governmental grants or transfers securities sales mineral or resource rights as well as any sales made.

Government revenue or national revenue is money received by a government from taxes and non tax sources to enable it to undertake government expenditures. Tax revenue is the income that is gained by governments through taxation taxation is the primary source of government revenue revenue may be extracted from sources such as individuals public enterprises trade royalties on natural resources and or foreign aid an inefficient collection of taxes is greater in countries characterized by poverty a large agricultural sector and large amounts of. Revenue definition the income of a government from taxation excise duties customs or other sources appropriated to the payment of the public expenses. To finance the goods and services they provide to citizens and businesses and to fulfil their redistributive role.

The income that a government or company receives regularly. Governments collect revenues mainly for two purposes. Seignorage is one of the ways a government can increase revenue by deflating the value of its currency in exchange for surplus revenue by saving money this way governments can increase the price of. The government may either sell goods or render services like train city bus electricity transport posts and telegraphs water supply etc.