Question

Identify the item which is included in the revenue receipts of the government budget.

• A. Tax revenue
• B. Loan receipts
• C. Capital gains
• D. Grants-in-aid

Answer 1

Answer:

A. Tax revenue

Tax revenue is included in the revenue receipts of the government budget.

Revenue receipts refer to the income earned by the government through its regular operations, and they are divided into two categories:

1. Tax Revenue: This includes taxes collected by the government, such as:

   • Direct taxes (e.g., Income Tax, Corporate Tax)

   • Indirect taxes (e.g., Goods and Services Tax (GST), Customs Duty, Excise Duty)

2. Non-Tax Revenue: This includes income from other sources like:

   • Interest and dividends

   • Profits from government-owned enterprises (e.g., Indian Railways, public sector banks)

   • Fines, fees, and penalties

Revenue receipts are important as they are typically used for the day-to-day expenses of the government, such as salaries, pensions, and other operational costs.