How does the governement get revenue from sources apart from tax?
Answers
1.Public services: Some goods and services provided by the public sector can also generate revenue. This can include licensing bandwidth to telecommunications companies, revenues from state-owned enterprises like national mining companies in commodity-rich countries or national banks, utilities, etc.
2.Grants and contributions: Some governments receive grants from other governments or international organizations. This can include a government of a developing country, or a local or regional government that receives transfers from the national government. Social contributions can include voluntary or mandatory social security contributions, which by some definitions differ from taxes in that they are entitlements payed to the beneficiaries under specific events (old age, sickness).
3.Interest and property income:The government owns assets such as land that can often generate income through rent, for example. Some governments can act as creditors and lend money directly through public or quasi-public agencies that charge interest (usually lower than market rates). Central Banks can also buy and sell some assets and send any profit to the Treasury/Finance Ministry.
4.One-time revenues:One time sources of revenue can include fines and penalties, sale of public assets, or lotteries.
Collecting different types of taxes is a primary way, by which governments earn money. There are a lot of many other methods, which are as follows:
1)Earning money by providing services. For example: railways, transportation, cellular services, postal services, etc. .
2)Selling defense equipment, to other countries.
3)Selling mineral commodities, like metals, oil and gas.
4)Earning money from leasing the airspace, i.e., charging airlines/ the government to allow the country's aircrafts in their own country's airspace.
5)Earning money by leasing the mines of natural resources to national or international miners.
6)Earning by renting the land to individual person, organization or nation.
Stock exchange and Forex.
The above stated are the few ways by which the governments earn money. Hope this helps you!!