Revenue Sharing Definition In Government

Revenue sharingrevenue sharing occurs when a government shares part of its tax income with other governments.

Revenue sharing definition in government. The revenue realized is paid into a the consolidated revenue fund. Alternatively revenue sharing may indicate any arrangement where a company gives a portion of its profits to its employees or other companies in an alliance. The amount of revenue shared is determined by law. State governments for example may share revenue with local governments while national governments can share revenue with state governments.

Resources to share in addition to collecting revenue government currently borrows to meet its expenditure requirements. It is the balance of national revenue plus borrowing less debt obligations which represents the total pool of resources available for sharing. Revenue sharing a government unit s apportioning of part of its tax income to other units of government. The practice of a government giving a portion of tax revenue to subdivisions of government.

Federal sharing of a fixed percentage of its revenue with the states confederation type of government in which power is held by independent states central government is a product of constituent governments. Revenue sharing is the distribution of revenue that is the total amount of income generated by the sale of goods and services among the stakeholders or contributors it should not be confused with profit shares in which scheme only the profit is shared i e the revenue left over after costs have been removed nor with stock shares which may be bought and sold and whose value may fluctuate. The act process and legislation of a form of a national unity government that distributes or shares a portion of tax revenue to a form of relevant unity assembly unity council unity legislature unity senate unity. Revenue sharing is a type of fiscal federalism whereby the federal government allocates revenue to state and local governments with little or no strings attached.

Revenue sharing definition is the dispensing of a portion of federal tax revenue to state and local governments to assist in meeting their monetary needs. What does revenue sharing mean. In our previous post on the major sources of government revenue and government expenditures we ve talked about how the federal government derives its revenue from different sources. Meaning of revenue sharing.

Unlike categorical grants that are program specific revenue sharing provides flexibility to subnational political jurisdictions in using federal funds tailored to their special needs. For example provinces or states may share revenue with local governments or national governments may share revenue with provinces or states. Generally the governments that receive the monies are free from any stipulations about or.