Questions and Answers
What is the primary source of direct tax revenue for the government?
Which of the following is an example of indirect tax?
What is the primary purpose of capital expenditure?
What type of revenue does a government receive from natural resources?
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What is the primary purpose of transfer payments?
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Which of the following is an example of non-tax revenue?
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Study Notes
Sources of Public Revenue
Tax Revenue
-
Direct Taxes:
- Income tax (individual and corporate)
- Property tax (real estate and personal)
- Wealth tax
-
Indirect Taxes:
- Sales tax (value-added tax, VAT)
- Customs duties (import and export duties)
- Excise duties (tax on specific goods and services)
Non-Tax Revenue
-
Fees and Charges:
- User fees (e.g., tolls, licenses)
- Service fees (e.g., passport, visa)
-
Rent and Royalties:
- Rent from government-owned properties
- Royalties from natural resources (e.g., oil, gas, mining)
-
Dividend and Interest:
- Dividends from government-owned enterprises
- Interest on government investments
-
Grants and Aid:
- International aid and assistance
- Grants from other governments or organizations
Allocation of Public Revenue
-
Current Expenditure:
- Salaries and wages
- Goods and services (e.g., supplies, utilities)
- Interest on debt
-
Capital Expenditure:
- Infrastructure development (e.g., roads, buildings)
- Equipment and machinery
- Research and development
-
Transfer Payments:
- Social welfare programs (e.g., pensions, subsidies)
- Subsidies to businesses and industries
- Grants to local governments and organizations
Sources of Public Revenue
Tax Revenue
- Direct taxes include:
- Income tax (individual and corporate)
- Property tax (real estate and personal)
- Wealth tax
- Indirect taxes include:
- Sales tax (value-added tax, VAT)
- Customs duties (import and export duties)
- Excise duties (tax on specific goods and services)
Non-Tax Revenue
- Fees and charges:
- User fees (e.g., tolls, licenses)
- Service fees (e.g., passport, visa)
- Rent and royalties:
- Rent from government-owned properties
- Royalties from natural resources (e.g., oil, gas, mining)
- Dividend and interest:
- Dividends from government-owned enterprises
- Interest on government investments
- Grants and aid:
- International aid and assistance
- Grants from other governments or organizations
Allocation of Public Revenue
Expenditure
- Current expenditure:
- Salaries and wages
- Goods and services (e.g., supplies, utilities)
- Interest on debt
- Capital expenditure:
- Infrastructure development (e.g., roads, buildings)
- Equipment and machinery
- Research and development
Transfer Payments
- Social welfare programs (e.g., pensions, subsidies)
- Subsidies to businesses and industries
- Grants to local governments and organizations
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Description
Quiz about different types of tax and non-tax revenue, including direct and indirect taxes, fees, charges, rent, and royalties. Understand the various sources of government income.
