PUBLIC FINANCE / FISCAL SCIENCE

1. Public RevenueDivided into-• Tax Revenue• Non-Tax Revenue

A. Tax RevenueCompulsory – Cannot Refuse – Incomes & Commodities • Direct Taxes• Indirect Taxes

Direct Taxes – Tax-payer & Tax bearer Income Tax, Corporate Tax, Wealth Tax, Gift Tax

1 lakh to 5 lakh – 10% 5 lakh to 8 lakh – 20% Above 8 lakh – 30%

• Reduce income inequalities• Progressive in nature• Certainty• Elastic & productive

Indirect Tax• Custom Duties – Import or Export duties.• Excise Duties – Production• Sales Tax – Business Transactions• Service Tax – on services• Regressive – Uncertain – Maximum revenue

Non-Tax RevenueSources –

1.Administrative revenue

2.Profits of Govt. enterprises

3.Gifts and Grants

1.Administrative RevenueFees – on services court fees, passport fees, license fees.Fines & penalties – on offenders of

laws as a punishmentSpecial Assessment – Betterment

levy on propertyEscheat – A person dies without any

legal heirs or will

2.Profits of Govt. Enterprises

- Railways, telephones

3. Gifts and Grants

Gifts – Voluntary Contributions – during war & emergency.

Grants – One Govt. to another Foreign aid – Military aid, food aid, technological aid.