Presentation on Sources Of Revenue For Government
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Transcript of Presentation on Sources Of Revenue For Government
Sources of revenue
The income of the government from all its sources is called public revenue. According to Dalton has defined public revenue as public receipts in a broad sense and public revenue in a revenue sense.
Tax Revenue
Non-tax revenue
Commercial revenueAdministrative revenueGrants and giftsOther income
TAX REVEN
UE
NON-TAX
REVENUE
REVENUE
RECEIPT
Collected for 2011-12
2008-09
2009-10
2010-11
2011-12
2012-13
0100000200000300000400000500000600000700000800000900000
1000000
Revenue ReceiptsCapital Receipts
Collection of receipt during year 2008-2012
What do you mean by TAX ?
“The tax is the price which each citizen pays to the state to cover his share of the cost of the general public services which he consumes.” - De Marco
TAX REVENUE
DIRECT TAXES
INDIRECT TAXES
CORPORATION TAX
INCOME TAX
EXPENDITURE TAX
SERVICE TAX
CUSTOM DUTIES
EXCISE DUTIES
SALES TAX
Direct Taxes
In this type of taxes, the liability to pay the tax and it’s burden falls on the same person. This can be classified into :
Corporation Tax
Income Tax
Service Tax
Expenditure Tax
These taxes against profits earned by businesses during a given taxable period. The contribution made by corp. tax is : 359,990.00 crore.
A tax that governments impose on financial income generated by all entities within their jurisdiction. The contribution made by corp. tax is : 172,026.00 crore.It is a tax which is payable on service provided by the service provider. The contribution made by corp. tax is : 82,000.00 crore.
Expenditure tax is a taxation plan that replaces the income tax .This tax is based on the rate of spending. The contribution made by corp. tax is : 52,900.00 crore.
Corporation Tax
Income Tax Service Tax0.00
50,000.00
100,000.00
150,000.00
200,000.00
250,000.00
300,000.00
350,000.00
400,000.00
Revised 2011-12Budget 2012-13
Budget of Direct Taxes
Indirect Taxes“In this type of taxes, the liability to pay the taxes and it’s
burden can be on different persons .” These can be classified into:
CUSTOM DUTIES
EXCIES DUTIES
SALES TAX
Customs Duty is a type of indirect tax levied on goods imported into a country as well as on goods exported from a country.
Excise duty is the indirect tax levied by the state on the manufacture or production of goods in India .
Sales Tax is a tax, levied on the sale or purchase of goods.
Wea
lth ta
x
Custom
s tax
Union E
xcise
Dut
ies
Taxe
s of U
nion T
errit
ories
0.00
40,000.00
80,000.00
120,000.00
160,000.00
200,000.00
Revised 2011-12Budget 2012-13
Budget of Indirect Taxes
Heads In Cr.
Corp Tax 359,990.00
Total Taxes on Income
172,026.00
Wealth Tax 635.00
Customs 151,700.00
Net Union Excise Duties
164,115.66
Total Service Tax 82,000.00
Total taxes on UT 1,973.22
Total Tax Revenue
932,439.88
Total tax revenue collected (2011-12)
CONSU mer
1,72,026.00 crores from Income Tax
Non-tax revenueGovernment revenue other than tax revenue is called tax
revenue.
Non-tax revenue
Commercial revenue
Administrative revenue
Grants and gifts
Other income
Administrative Revenue
Fees
Fines Escheat
It includes fees, licence fees, special assessment, fines and penalties, forfeitures, escheats and rates.
A fee is a payment to the government for
the services that is renders to the people.
It refers to that income of the state which arises out of the property left by the
people without a legal heir.
Fines are those payment which is made by law breakers to the government by
a economic punishment
Special Assessment Meaning:- If on account of government activities a value of any property increases and if government levies a tax on this enhanced value, it is known as special assessment .According to Taylor,“Special assessment are charges imposed upon property benefited by such improvements the amount of charge been determined by pro-rata or pro-rata benefits ” When government undertakes certain activities of public improvements like construction of roads etc. they may confer the 1.Common benefit to the community as a whole, and 2.Special benefit for those whose properties are taken.
Grants and Gifts
Gifts are voluntary contribution from private individuals to the government fund for specific purposes. In federal countries, the central government gives grants-in –aid to the state government and the state government gives grants to the local bodies for carrying functions successfully, or for undertaking specific activity. These grants may be unconditional as well as for specific purposes.
Grants are received from foreign countries in the form of foreign aid, which may be military economy and technical type.
Commercial revenue
All types of revenue which are derived by government from public enterprises by selling their goods and services are called commercial revenue.
Other Incomes Other Incomes of the government includes the
following –
• Income from Public Property - Government gets income every year from all the public property. Example- Agricultural income and income from forest and mines etc.
•Deficit Financing – It is also one of the sources of financing and government expenses. These excess amount may be used for public welfare .
•Duties – Duties are levied in intoxicate articles, so that the consumption of such articles may be minimized. Such duties are collected on liquor, opium, Bhaang etc.
•Voluntary Loans – Loans are taken for meeting out the expenses. It may be voluntary or compulsory.
•Rates – Whenever a tax is levied by local bodies and its boundaries, it is known as rates. The rates differ from place to place.
Total Non-Tax collected (2011-12)
Heads In Cr.
Interest Receipt 19,577.78
Total Dividends and Profits
42,623.68
Total Fiscal Services 127.82
General Services 11,494.36
Total Social Services 2,353.90
Economic Services 45,915.27
Total Grants in Aid 2,172.96Non Tax Revenue of UT 1,169.35
Total Non Tax Revenue
125,435.12
Market Loans
External Assistance
Recovery Of Loans and AdvancesDisinvestment
Open market borrowings through auctions and other instruments.
Loans from friendly foreign countries and international organizations.
Recoveries from different levels of government and PSU’s.
Transfer of shares from PSU’s to general public.
Capital ReceiptsIn India, capital receipts of the government budget are further classified as under:
Small Savings
P.F. and other deposits
These include Post Office deposits ,NSS , NSC ,KVP etc.
Deposit scheme for retiring government and PSU employees
Heads In CroresNet Recoveries of Loans and Advances 15,020.00
Misc. Capital Receipts 40,000.00
Net Short Term Borrowings 358,000.00
Securities against Small Savings 24,182.46
Net State Provident Funds 10,000.00
Net Other Receipts (Internal Debts) (13,865.89)
Net External Debt 14,500.00Draw Down of Cash Balance 20,000.00
Net Market Stabilization Scheme 20,000.00
Total capital receipt collected (2011-12)
QuIz TiMe
World bank
ONGC
PSU
14258 15493
521980
2011-12
Recoveries Of LoansOther ReceiptsBorrowings and Other Liabili-ties
11650 30000
513590
2012-13
*Note – Values in Crores
Consumer’s Tax Burden
Capital Receipts
Capital receipts of the government are those monetary receipt which satisfy the following two characteristics:
* These receipts create a liability for the government.
* These receipts cause a reduction in the assets of the government .
Government Receipts
SOURCES OF REVENUE
TAX RECEIPTS
NON-TAX RECEIPTS
CORPORATION TAX INCOME TAX
SERVICE TAX
CUSTOM DUTIES
EXCISE DUTIES
SALES TAX
FINES
ASSESSMENT
INCOME FROM THE SALE OF SPECTRUM
INCOME FROM PUBLIC ENTERPRISES FEES
ESCHEAT
GRANTS/DONATIONS
Income Tax
“The tax is the price which each citizen pay to the state to cover his share of the cost of the general public services which be will consume.” - De Marco
Why the government actually collects Taxes?????
Tax Collectors
Inco
me
Tax
Cor
pora
tion
Tax
Excise Duty
Service Tax
Custom
Duty
VAT W
ealth Tax
Service tax
Corporation tax
Sales tax
Revenue receipts
Those money receipts of the government are known as revenue receipts which satisfy the two following related characteristics :
* These receipts do not create any corresponding liability for the government. * These receipts do not cause any reduction in the assets of the government .