Non-Tax Revenue refers to income earned by the government from sources other than taxes, including dividends, fees, fines, interest receipts and profits from public sector enterprises. It plays an important role in government finance and economic management.
Which one of the following is not a source of Public revenue?
Correct Answer:
(D)
Subsidy
Income tax, public borrowings and VAT (Value Added Tax) are the sources of public revenue, while subsidy is a part of public expenditure.
Ques: 2
Which among the following are the sources of income in current account of the Central Government?
Corporation Tax
Profit from Public Enterprises
Sale of National Savings Certificates
Loans received from the World Bank
Excise duties
Select the correct answer from the codes given below:
Codes:
Correct Answer:
(D)
1, 2 and 5
The current or revenue account of the government includes all the revenue receipts (also known as current receipts) of the government income which cannot be reclaimed back from the government. The tax and non-tax revenue receipts consist of corporation tax, taxes on income, customs, GST Union excise duties, dividends and profits from public enter- prises etc. All those receipts of the government which either creates liability or reduces financial asset are capital receipts. Sale of National Saving Certificates and loans received from the World Bank are included in capital receipts and hence, they are the part of Capital account of the budget.
Ques: 3
Which of the following is an example of non-tax revenue?
Correct Answer:
(C) Dividends from public sector enterprises
Non-tax revenue refers to government income from sources other than taxes. Dividends from public sector undertakings are a type of non-tax revenue as it's income earned from the government's investment in these companies.
Ques: 4
Consider the following statements regarding Non-tax revenue:
It is the form of fees/ charges paid by people for utilising the government’s services.
It includes fines imposed by the government on people/ entities for not following rules.
Which of the statements given above is/are correct?
Correct Answer:
(C) Both 1 and 2
Non-tax revenue is in the form of fees or charges paid by people for utilising the government's services. It also includes fines imposed by the government on people and entities for not following rules. People and companies are under a legal obligation to pay income tax and corporate tax, respectively.
Ques: 5
Consider the following statements:
Non-Tax Revenue is the recurring income that is earned from sources other than taxes by the government.
They are the revenue receipts that are not generated by taxing the public.
Which of the statements given above is/are correct?
Correct Answer:
(C) Both 1 and 2
Non-tax revenue refers to the income that the government earns from sources other than direct or indirect taxes. It includes revenue from fees, fines, dividends, profits, and services provided by the government.