Revenue Budget Of Government
Government budget therefore comprises of revenue budget and capital budget.
Revenue budget of government. Revenue receipts are divided into tax and non tax revenue. Governments acquire the resources to finance their expenditures through a number of different methods. Salaries of employees interest payments on past debts grants given to state governments etc. Governments however also have recourse to raising funds through the sale of their goods and services and because government budgets seldom balance through borrowing.
Revenue budget consists of the revenue receipts of government tax revenues and other revenues like interest and dividend on investments made by government fees and other receipts for services rendered by government and the expenditure met from these revenues. The revenue budget consists of revenue receipts of the government revenues from tax and other sources and its expenditure.