Which of the following is/are included in the revenue budget of the government? Give reasons for your answer.
- Tax revenue.
- Non-tax revenue.
- Loans received from foreign governments.
- Small savings.
- Interest payments.
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- Tax Revenue is an important part of the Revenue Receipts. It is included in the Revenue budget of the government It neither increases liabilities nor reduces assets.
- Non-Tax Revenue is also included as a Revenue Receipt because it neither increases liabilities nor reduces the assets of the government.
- Loans received from foreign governments imply borrowings, which leads to increase in the liabilities of the government. It is a capital receipt so not to be included in revenue budget.
- Small savings-like savings in Post offices or PPF scheme, through them the money is lent to the government i.e. this leads to increase in its liabilities, so it is a capital receipt, so not to be included in revenue budget.
- Interest payment is Non-Tax Revenue which is a part of revenue receipt; as it neither increases liabilities nor reduces the assets. So, it is included in revenue budget.
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