MCQ
Q.
Which of the following item provide maximum revenue in the Revenue Receipts of Rajasthan budget in recent years?
Correct Answer: B
The correct answer is the State's tax revenue.
Key Points
- State's tax revenue contributes to maximum revenue in the Revenue Receipts of Rajasthan budget in recent years.
- State tax revenue was 12.12% higher in 2018-2019 with respect to the budget of 2017-2018.
Additional Information
- Government Revenue Budget
- The Revenue Account: which includes Revenue Receipts (Tax and Non-Tax Revenue) and Revenue Expenditure (Plan Revenue Expenditure and Non- Plan Revenue Expenditure).
- Tax revenues are made up of taxes such as income tax, corporate tax, excise, customs, and other duties that the government levies.
- In non-tax revenue, the government's sources are interesting on loans and dividends on investments like PSUs, fees, and other receipts for services that it renders.
- Revenue expenditure is the payment incurred for the normal day-to-day running of government departments and various services that it offers to its citizens.
- The government also has other expenditures like servicing the interest on its borrowings, subsidies, etc.
- Usually, the expenditure that does not result in the creation of assets, and grants given to state governments and other parties are revenue expenditures. The difference between revenue receipts and revenue expenditure is usually negative. This means that the government spends more than it earns. This difference is called the revenue deficit.
