Question

from where do the state governments get funds for various functions? Mention any four functions in which they use these funds.​

Answer 1

Explanation:

State governments collected $2.0 trillion of general revenue in 2017. General revenue from income, sales, and other taxes totaled $946 billion—nearly half of all general revenue (figure 1). About one-third came from intergovernmental transfers.

INTERGOVERNMENTAL TRANSFERS

Intergovernmental transfers to state governments—primarily from the federal government—totaled $659 billion in 2017. The largest were federal grants for public welfare programs, predominately Medicaid.

OWN-SOURCE REVENUE

Revenue from state sales and gross receipts taxes—including both general sales taxes and selective taxes on products such as alcohol, cigarettes, and motor fuels—was $457 billion in 2017, or 23 percent of state general revenue. Individual income taxes provided $352 billion (18 percent of state general revenue) and corporate income taxes accounted for $45 billion (2 percent of state general revenue). Revenue from all other taxes (including license fees, estate taxes, and severance taxes) was roughly $93 billion—5 percent of state general revenue. Charges and fees—notably tuition paid to state universities, payments to public hospitals, and tolls on highways or bridges—and other miscellaneous revenue provided $371 billion, or 19 percent of state general revenue in 2017.

General revenue does not include revenue collected by states from “business-like” enterprises, such as state-run liquor stores, utilities, and pension funds.