Government revenue is the money received by a government from taxes and non-tax sources to enable it to undertake government expenditures.
Government revenue, as well as government spending, are components of the government budget and important tools of the government’s fiscal policy.
Government revenue is derived from:
- Tax revenue: including taxes on the incomes and wealth accumulation of individuals and corporations and on the goods and services produced, exported, and imported.
- Non-tax revenue: includes dividends from government-owned corporations, central bank revenue, and capital receipts in the form of external loans and debts from international financial institutions.
Now let us look at the breakdown of the 46% tax received.