Budget 2023: Tax & Non-tax revenue; Key terms explained

Budget 2023 will be presented on the 1st of February. Ahead of the budget speech, here are some of the key words and phrases explained.

What is tax-revenue?

Tax revenue is one of the ways the govt earns money. This include both direct as well as indirect taxes. All taxes including income tax, corporate tax, customs duty, excise duty, GST, Cess are all part of what makes up the govt’s tax revenue bucket. Tax revenue is one of the main ways that the govt actually earns money.

What is non tax revenue?

Non-tax revenue encompasses all other sources of revenue for the govt excluding tax revenue . For example, profits from govt companies, returns on investments the govt makes, the money that the govt gets by selling either a part of or an entire company that it owns, govt services which include the tolls that we pay, electricity bills. All of this forms the govt’s non-tax revenue stream.