what are the sources of income for government ? what does the government do with the income
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Government also gets money from sin taxes, loans, donations and investments. Local government gets most of its income from selling electricity and water and from a special tax on property called `property rates'. They also get grants from national Treasury for infrastructure and for the equitable share.
A majority of the capital generated is spent on states' taxes and duties, interest payments, defence and subsidies. A major source of revenue for the government is the Goods and Services Tax (GST).
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