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Question
By giving valid reasons, explain whether the following will be included in the commercial revenue of the government or not?
Irrigation charges paid by Mr. Shah as a farmer.
Answer in Brief
Solution
- Irrigation charges paid by Mr. Shah as a farmer are commercial revenue, as the government derives revenue by selling irrigation services to Mr Shah.
- Commercial revenue refers to the income the government earns through its commercial activities, which are services or goods provided by the government for a fee.
- Irrigation charges fall under this category because they are payments made by individuals or businesses (like Mr. Shah, the farmer) for using government-provided irrigation services.
- These charges are a source of revenue for the government, generated from its commercial operations in managing and providing irrigation facilities.b
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Sources of Public Revenue
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