Question

Which of the following is true about revenue receipts?

• A. Revenues received by a government from tax and non-tax sources are called revenue receipts.
• B. Revenue receipts are also called public revenues.
• C. Revenues received by a government through borrowing are called revenue receipts.
• D. Revenue receipts are also called capital receipts.

Answer 1

Answer: (A), (B)

Revenue receipts are also called public revenues.

Tax and non-tax revenues added together are called revenue receipts. They are also called public revenues. The government uses its public revenues to carry out government activities. If a government has shortage of public revenues, it borrows money to fund its activities.