Sources Of Central Government Receipts

Anurag Educational Academy

Receipts: 1. Revenue Receipts
                2. Capital Receipts

1.Revenue Receipts:
✔ it does not create Government liabilities...
✔ There are two types of revenue receipts:
     (A) Tax Revenue Receipts
     (B) Non-Tax Revenue Receipts

(A) Tax Revenue: Two types- Direct Tax And Indirect Tax

      (i) Direct Tax Revenue; 

           Like: (a) Income Tax,

                     (b) Wealth Tax,

                     (c) Property Tax,

                     (d) Corporation Tax...

      (ii) Indirect Tax Revenue;
             Like: (a)  Sales Tax, 
                      (b) Service Tax,
                      (c) Central Excise Duties,
                      (d) Custom Duties...

(B) Non Tax Revenue:
       Like: (a) Interest on Lending, 
                 (b) Dividends, 
                 (c) Stamp Printing,
                 (d) Fees, 
                 (e) Penalties.....

2.Capital Receipts:
✔ It creates government liability as well as reduce the financial assets
✔ Like: Loans from general public(by issuing/selling bonds,securities...),Loans from foreign government,from RBI,From international institutions(World Bank, IMF.....)
✔ There are two types of Capital Receipts; 
(A) Debt Receipts
(B) Non-Debt Receipts


(A) Debt Receipts: it has to repay by the government

       Like; (a) Market Loans,
                 (b) Short-Term borrowing 
                 (c) Treasury Bills,
                 (d) State Provident Fund,
                 (e) Relief Bonds,
                 (f) Saving Bonds...

(B) Non-Debt Receipts: it does not create any future repayment
      Like; (a) Recovery of Loans and Advances,
               (b) Disinvestment(sales of the shares of the selected PSUs)



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Anurag Educational Academy