GOVERNMENT INCOME GOVERNMENT EXPENDITURE

57.  GOVERNMENT INCOME
GOVERNMENT EXPENDITURE
1.      Meaning
Government income refers to amount earned or received by the government during a given period of time.
2.      Forms
Government income can be:
(a)    Revenue income such as tax and non-tax revenue.
(b)   Capital income/receipts such as borrowings and other capital receipts.

3.      Importance
It facilitates expenditure on development and non-development activities
.


Government expenditure refers to amount spentby the government during a given period of time.


Government expenditure can be:
(a)   Revenue expenditure such as recurring expenditure on health, education, etc
(b)   Capital expenditure such as expenditure on infrastructure like roads, power, etc.


It facilitates economic and social development.