What is non-tax revenue?

Correct option is B

The correct answer is (B)  Recurring income earned by the government from sources other than taxes

• ​Non-tax revenue refers to the income earned by the government from sources other than taxes.
• It includes fees, charges, profits from public enterprises, and other non-taxable streams.

Information booster:

Sources of Non-Tax Revenue

• Fees and Charges: Payments for government services like issuing licenses, registration fees, and fines.
• Dividends and Profits: Earnings from public sector enterprises and government investments.
• Interest Income: Interest received on loans given to states, businesses, or other countries.
• Rent and Royalties: Income from leasing government properties and royalties from natural resources like coal and minerals.
• Grants and Donations: Financial aid or grants from foreign governments or international organizations.
• Miscellaneous Sources: Other incomes like sale of assets, postal services, and public utilities.

Importance

• Helps reduce the government's dependency on taxes.
• Provides additional funds for development and welfare programs.
• Contributes to fiscal stability.