Government revenue refers to all the income of the government from taxes and non-tax sources. These funds are used for government expenditure. Government revenues and spending are an important part of fiscal policy of the government.
Revenue refers to all the receipts of the government from taxes, custom duties, revenue from state-owned enterprises, capital revenues and foreign aid.
Revenue is generated from mainly two types of sources:
Tax revenue: Taxes on incomes of individuals and corporations and also on the goods and services produced.
Non-tax revenue: Dividends from state-run companies, central bank revenue and capital receipts in the form of external loans and debts from international financial institutions.
India’s total revenue in the April-November quarter of FY20 increased 12.9 per cent to Rs 10.12 trillion. It was 8.97 trillion in the same period in FY19.
Government revenues averaged Rs 3.09 trillion from 1997 until 2019, touching an all-time high of Rs 16.66 trillion in March 2019.