Government Revenue (income):
1. Government income refers to the revenue of the government from different sources including tax revenue non-tax revenue, administrative revenue etc.
2. E.g. Tax revenue including Direct and Indirect Tax.
3. Non-tax revenue include profit from government enterprise administrative revenue like fees, fines, penalties.
4. Generally government income results in transfer of purchasing power from people to government.
5. Surplus income with government indicates sound financial background.
Government Expenditure:
1. Government expenditure refers to the expenditure by government to perform various functions and duties.
2. E.g. Revenue expenditure on health, education, defence and administration.
3. Capital expenditure on roads, railways, dams, machinery and public enterprise.
4. Government expenditure leads to transfer of purchasing power from government to people.
5. Massive expenditure indicates more welfare to people.
