Question

Which of the following statements about non-tax revenue is correct?

• A. It is the primary source of government income.
• B. It is always lower than tax revenue.
• C. It is exclusively generated from borrowing.
• D. It helps the government to reduce its dependence on taxes.

Answer 1

Answer:

D. It helps the government to reduce its dependence on taxes.

• A diversified revenue base, including non-tax revenue, allows the government to fund its activities without solely relying on tax collection.