Friday, September 21, 2012
SOURCES OF GOVERNMENT REVENUE.
Government revenue refer to the income generated by the government through various income sources inside and outside the particular government,As to any other person one will be eager to know where government earn money to finance its activity as well as expenditure of the government.The following are the source of revenue of various government including united republic of Tanzania (URT) :-
Taxation,Like we have discussed in the previous tutorial that taxation is a compulsory levy imposed by the government where by no direct benefit citizen will receive from the government,The levy is usually payable by citizen at different rate depending on the nature of economic activity conducted by an individual or firm the obtained amount is the revenue for the government and is used to meet various expenditure causing taxation to be the first sourceof government revenue.
FEES,These are payment made by users of public services on government cost sharing in health and education,That is to say the payment made by user of public services i.e health and education is not the actual cost that they were required to pay rather than contribution on cost already payable government.
FINES,Refer to the penalties imposed by goverment against law breaches,i.e any person or firm which ha been proved guilt by law must be exposed to specific fine as the compensation for the destruction made by a person or firm and the collected amount being the revenue for the government
GRANTS,Refer to non-payable money provided by the government to another government with the aim of helping such government either to improve or to start a project which are of great importance.to the society of such government.
FOREIGN INVESTMENT,Sometime government may decide to invest beyond its boundary provided there is a proof for sustainable and profitable cash flow,the obtained amount after operation being the revenue for particular government.