GOVERNMENT REVENUE

STRUCTURES OF GOVERNMENT REVENUE

Public revenue refers to the total income that accrues to the government of a country from various sources.

Government needs enough revenue in order to enable it to carry out its numerous functions.

TYPES OF PUBLIC REVENUE

1. Capital Revenue (or receipts): Capital receipts, also called irregular or extraordinary sources of revenue are sources of revenue used for meeting expenditure on heavy capital protects e.g. grants, loans etc.
2. Recurrent Revenue: Recurrent revenue is a regular source of revenue. Recurrent revenue is income which is received on a regular or yearly basis e.g. taxation fee, license and interest on loans etc.

SOURCES OF GOVERNMENT REVENUE

1. Taxes
2. Loans

• Grants and aids

1. Money from government investments
2. Issuing of license
3. Licence

• Rents and rates