Sources of Income to the Government

Q. How is a grant different from a loan?

1. No need of repayment
2. No need of interest
3. Borrowing money
4. No need of collateral

Q. The Government of India earns tax and non-tax revenues to carry out various functions like providing public goods, implementing welfare schemes related to education and food, and managing the day-to-day functions of the country.

Identify the non-tax revenues of the government.

1. Customs duty
2. Profits earned by PSUs
3. Interest received on loans
4. Fines and penalties

Q. Identify the sources of income for the government.

1. Taxes
2. Penalties
3. User fees
4. Government
   scheme
5. Fines
6. Foreign grants
7. Salaries
8. Profit from PSUs

Q. Tina earns an income of ₹6 lakh. But a portion of her income goes to the government in the form of taxes. This means that Tina is a ____________ .

1. govenment servant
2. taxpayer
3. labourer
4. employee

Q. What is the compulsory payment made to the government by the citizens of the nation called?

1. Bill
2. Tax
3. Fine
4. Penalty