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Government revenue

Government revenue or national revenue is money received by a government from taxes and non-tax sources to enable it, assuming full resource employment, to undertake non-inflationary public expenditure. Government revenue as well as government spending are components of the government budget and important tools of the government's fiscal policy. The collection of revenue is the most basic task of a government, as the resources released via the collection of revenue are necessary for the operation of government, provision of the common good (through the social contract in order to fulfill the public interest) and enforcement of its laws; this necessity of revenue was a major factor in the development of the modern bureaucratic state.[1]

Government revenue is distinct from government debt and money creation, which both serve as temporary measures of increasing a government's money supply without increasing its revenue.

  1. ^ Bräutigam, Deborah (2002). "Building Leviathan: Revenue, State Capacity and Governance". IDS Bulletin. 33 (3). Institute of Development Studies: 1–17. doi:10.1111/j.1759-5436.2002.tb00034.x.

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