Tax and Non-Tax Sources of Public Revenue To Government

Introduction To Public Revenue ↓
Governments need to perform various functions in the field of political, social & economic activities to maximise social and economic welfare. In order to perform these duties and functions government require large amount of resources. These resources are called Public Revenues.Public revenue, consists of taxes, revenue from administrative activities like fines,

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Difference Between Direct and Indirect Taxes - Comparison

1. Allocation Effect ↓
The allocative effects of direct taxes are superior to those of indirect taxes. When a particular amount is raised through a direct tax like income tax, it would imply a lesser burden than the same amount raised through an indirect tax like excise duty.An indirect tax involves excessive burden as it distorts the consumer's preference regarding goods due to price changes.

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Role of Taxation in Developing Countries Like India

Introduction ↓
In developing countries the government has to play an active role in promoting economic growth & development because private initiative & capital are limited.
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Fiscal policy or budget has become important instrument in promoting growth and development in such economies.Taxation is an important part of fiscal policy which can be used effectively by

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Indirect Tax Meaning - Merits and Demerits of Indirect Taxes

What are the Indirect Taxes ? Meaning ↓
An indirect tax is one in which the burden can be shifted to others. The tax payer is not the tax bearer. The impact and incidence of indirect taxes are on different persons. An indirect tax is levied on and collected from a person who manages to pass it on to some other person or persons on whom the real burden of tax falls. For e.g. commodity taxes or

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Direct Taxes Meaning - Merits and Demerits of Direct Taxes

What are Direct Taxes ? Meaning ↓
A direct tax is one, which is paid by a person on whom it is legally imposed and the burden of which cannot be shifted to any other person. The person from whom it is collected cannot shift its burden to anybody else.
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The tax-payer is the tax-bearer. The impact i.e. the initial burden and its incidence i.e. the ultimate burden of

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What is Tax ? Definition - Adam Smith's Canons of Taxation

What is Tax ? Meaning and Definition ↓
The tax revenue is the most important source of public revenue. A tax is a compulsory payment levied by the government on individuals or companies to meet the expenditure which is required for public welfare.
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According to Hugh Dalton, "a tax is a compulsory contribution imposed by a public authority, irrespective of the exact

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Analysis of India's Balance of Payment Situation Since 1991

Balance of Payments of a Country - Introduction ↓
The balance of payments of a country is a systematic record of all transactions between the residents of a country and the rest of the world carried out in a specific period of time.Image Credits © Jenn.India's balance of payment worsened in the early 1990's but now the situation is under control. In fact, India has a good foreign exchange

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Measures To Correct Deficit in the Balance of Payment BoP

How to correct the Balance of Payment ?
Solution to correct balance of payment disequilibrium lies in earning more foreign exchange through additional exports or reducing imports. Quantitative changes in exports and imports require policy changes. Such policy measures are in the form of monetary, fiscal and non-monetary measures.
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Monetary Measures for Correcting the

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Types of Disequilibrium in Country Balance of Payment

Balance of Payment of the country is determined by a multiplicity of forces and the equilibrium in it is the resultant of numerous inter-related elements.

The main types of disequilibrium in the balance of payment are as follows :-
1. Structural Disequilibrium
It takes place due to structural changes in the economy affecting demand and supply relations in commodity and factor market. Structural

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Disequilibrium in the Balance of Payment - Meaning , Causes

Meaning of Disequilibrium in Balance of Payment ↓
Though the credit and debit are written balanced in the balance of payment account, it may not remain balanced always. Very often, debit exceeds credit or the credit exceeds debit causing an imbalance in the balance of payment account. Such an imbalance is called the disequilibrium. Disequilibrium may take place either in the form of deficit or

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