Source of Government's Revenue

Written by
Syeda Sadia Amber Jilani
 Economist & Economic Analyst

Taxes have a crucial role in every fiscal year's budget. Any government requires revenue to fulfill its national obligations. There are three main sources of govt's revenue.

1_Taxes;

Taxes are the mandatory payments made by citizens to the government, derived from their annual income, profits, and purchases of goods and services.

Source of Government's Revenue 

2_ Surcharges;

Surcharges are the additional fees imposed by the government on the basic costs of goods and services, which are included in the price of those goods and services.

3_ Non_Tax Sources;

The government has other revenue sources besides taxes, which are used as needed. For instance, foreign aid, loans, interest on loans, fines, fees and the privatization and sale of state_owned properties, etc.