Revenue

1. REVENUE RECEIPTS
A. Tax Revenue

Tax revenue includes all the revenues earned through various kinds of taxes.taxes are broadly
divided into direct & indirect taxes.

Direct Tax Corporation Tax , Income Tax, Interest Tax, Wealth Tax, Gift Tax, Div.
Distribution Tax, Personal Income Tax, Fringe Benefit taxes, Banking Cash Transaction
Tax
indirect tax custom duties , excise duties, sales tax, service tax

B. Non tax
It includes the revenue accruing to the government from sources other than tax, these are; ,
interest receipts, dividends, grants, fines
2. CAPITAL RECEIPTs
These include borrowing of the government, since these receipts have to be repaid by the
government, the capital receipts are liabilities, capital receipts include public borrowing,
recovery of loans and resale of shares and bonds held by the government.
Expenditure
1. Revenue Expenditure
It is the expenditure incurred for the day-to-day functioning of the government departments and
various services offered to the people, etc. Revenue expenditure will not result in the creation
of assets
2. Capital Expenditure

capital expenditure is the expenditure incurred on creating permanent assets, such

expenditure is incurred on items like construction of buildings ,roads, bridges, canals
,power plants, capital equipments