Monday, March 22, 2010

Concept of government revenue

Concept of government revenue
During 18th century under the influence of Adam Smith there was a strong view that the only function of government is also maintain internal law and order protect the country from foreign aggression.The activities of the government increased rapidly after second world war.In recent years the ghosts of Adam Smith has awakened.It is now through."That government is the best which does the least".But due to different reasons the role of government has not declined in importance in developing countries.The government has to play in importance role in providing social services such as education,health,nutrition,sanitation and economic services such as road,electricity,and communication.
The government needs adequate finance its activities.The government receives public revenue from various sources.Hence,how government receive income,what are the effects of public revenue,how the adverse effects,if any,can be removed are studies under public revenue.
The public revenue is an important part of public finance. According to economist Dalto,the terms public revenue has both narrow and wider meaning.In broad sense,public revenue includes all the income and receipt receive by the government.But in narrow sense,it includes only income receive from taxes.

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