Government revenue

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Government revenue or national revenue is money received by a

public expenditure. Government revenue as well as government spending are components of the government budget and important tools of the government's fiscal policy. The collection of revenue is the most basic task of a government, as the resources released via the collection of revenue are necessary for the operation of government, provision of the common good (through the social contract in order to fulfill the public interest) and enforcement of its laws; this necessity of revenue was a major factor in the development of the modern bureaucratic state.[1]

Government revenue is distinct from government debt and money creation, which both serve as temporary measures of increasing a government's money supply without increasing its revenue.

Sources

There are a variety of sources from which government can derive revenue. The most common sources of government revenue have varied in different places and time periods. In modern times, tax revenue is typically the primary source of revenue for a government.

social security contributions, payroll taxes, property taxes (including wealth taxes, inheritance taxes, and gift taxes), and taxes on goods and services (including value-added taxes, sales taxes, excises, and duties).[2] Besides, lotteries can also bring in considerable revenue for the government. In early 2009, the Australian government used lotteries to boost spending, generating more than $60m in additional tax revenue for state governments. [3]

Seignorage is one of the ways a government can increase revenue, by deflating the value of its currency in exchange for surplus revenue, by saving money this way governments can increase the prices of goods.[citation needed
]

Under a federalist system, sub-national governments may derive some of their revenue from federal grants.[citation needed]

Politics

Most governments have a

finance minister that oversees government revenue. Governments may also have a separate revenue service
dedicated to the collection of revenue.

See also

References

Citations

  1. ^
    doi:10.1111/j.1759-5436.2002.tb00034.x
    .
  2. ^ "Definition of Taxes" (PDF). OECD. April 19, 1996. Retrieved March 23, 2022.
  3. S2CID 40298846
    .


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