Revenue Budget Definition Economics

Revenue budget consists of the revenue receipts of the government tax revenues and other revenues and the expenditure met from these revenues.

Revenue budget definition economics. Revenue is also known as sales as in the price to sales ratio an alternative to the price to earnings ratio that uses revenue. A budget is basically a financial plan for a. The budget that covers all the revenue receipts and expenses of a particular financial year is a revenue budget. Revenue in economics the income that a firm receives from the sale of a good or service to its customers.

Budget is an essential element in the planning and control of the financial affairs of a nation and is made necessarily and essentially because income and expenditure do not occur simultaneously i e income or revenue receipts and expenditure flows do not always coincide. Marginal revenue mr the change in revenue from selling one extra unit of output. B revenue budget. Revenue is the income generated from the sale of goods and services in a market.

The table below shows the demand for a product where there is a. Revenue expenditure is expenditure for the normal running of government departments and various services interest charges on debt incurred by government subsidies and so on. Total revenue tr price per unit x quantity. Revenue budget consists of the revenue receipts of the government tax revenues and other revenues and the expenditure met from these revenues.

Tax revenue is the income that is gained by governments through taxation. Technically revenue is calculated by multiplying the price p of the good by the quantity produced and sold q. A budget is an estimate of income and expenditure for a future period as opposed to an account which records financial transaction. A budget is an estimation of revenue and expenses over a specified future period of time and is utilized by governments businesses and individuals.

Revenue is money brought into a company by its business activities. Revenue receipts are divided into tax and non tax revenue. A budget acts as a map for the future economic activities of the business which are prepared as per the policies of the different organizational functions. Average revenue ar price per unit total revenue output.