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Question
Identify administrative revenue from the following:
Options
Licence fee
Postal charges
Tution fees of public education institution
Payment for electricity distributed by the government
Solution
Licence fee
Explanation:
Administrative revenue refers to income earned by the government through administrative activities, such as providing licenses, permits, and other regulatory services. The licence fee is considered administrative revenue because it is charged by the government in exchange for granting legal permission to engage in specific activities, like driving or running a business.
Other options, such as postal charges, tuition fees, and payments for electricity, are considered commercial revenues as they are charges for services provided by the government rather than regulatory fees.
