How is tax revenue different from administrative revenue?
Download our app for free and get startedPlay store
Tax is the main source of revenue of the government. Tax revenue is the revenue that arises on account of taxes levied by the government. It consists of the proceeds of taxes levied by the government. Taxes are of two types, i.e., direct and indirect. Direct taxes are those taxes levied immediately on the property and income of persons, e.g., income tax, corporate tax, wealth tax, etc, whereas indirect taxes are the taxes levied on the production and sale of the goods like sales taxes, excise duty, etc. On the other hand, administrative revenue is revenue that arises on account of the administrative function of the government. It includes fees (college/ school), license fees paid to get permission to perform a service, fines and penalties levied for an infringement of a law, forfeitures of surety or bonds by courts and escheat which means claim of the government on the property of a person who dies without having any legal heir or without leaving a will.
art

Download our app
and get started for free

Experience the future of education. Simply download our apps or reach out to us for more information. Let's shape the future of learning together!No signup needed.*

Similar Questions

  • 1
    In the above question, calculate the effect on output of a 10 percent increase in transfers, and a 10 percent increase in lump-sum taxes. Compare the effects of the two.
    View Solution
  • 2
    What is government budget? Explain its major components.
    View Solution
  • 3
    Explain the concept of 'deflationary gap'. Also, explain the role of 'margin requirements' in reducing it.
    View Solution
  • 4
    Suppose that for a particular economy, investment is equal to 200, government purchases are 150, net taxes (that is lump-sum taxes minus transfers) is 100 and consumption is given by C = 100 + 0.75Y,
    1. What is the level of equilibrium income?
    2. Calculate the value of the government expenditure multiplier and the tax multiplier.
    3. If government expenditure increases by 200, find the change in equilibrium income.
    View Solution
  • 5
    Define revenue receipts in a government budget. Explain how government budget can be used to bring in price stability in the economy.
    View Solution
  • 6
    In an economy, if initial investments are increased by ₹ 100 crores, discuss the working of investment multiplier presuming marginal propensity to consume is 0.8.
    View Solution
  • 7
    What are revenue receipts? Explain the role of government budget in bringing stability in the economy.
    View Solution
  • 8
    Consider an economy described by the following functions: C = 20 + 0.80Y, I = 30, G = 50, TR = 100.
    1. Find the equilibrium level of income and the autonomous expenditure multiplier in the model.
    2. If government expenditure increases by 30, what is the impact on equilibrium income?
    3. If a lump-sum tax of 30 is added to pay for the increase in government purchases, how will equilibrium income change?
    View Solution
  • 9
    What is the difference between direct tax and indirect tax? Explain the role of government budget in influencing allocation of resources.
    View Solution
  • 10
    What is government budget? Explain the role of government budget in influencing allocation of resources in the economy.
    View Solution