What are the sources of non-tax revenue?

Non-tax revenue forms one of the main sources of public revenue, along with tax revenue. The major sources of non-tax revenue are: -

1. Fees: it is the reward collected for the government’s services like license fees, registration fees, tuition fees, etc.

2. Fines and Penalties: these are monetary punishments meted out to individuals and organisations for violating the laws of the land.

3. Grants: are the financial aids provided by one government or organisations for meeting specific objective. For example, charitable institutions provide grants for the uplift the conditions of certain groups of people.

4. Interest: the Government receives interests for the loans it extended to various enterprises, agencies and countries.

5. Profit: it is the net income Government receives from the enterprises it operates like the Indian Railways, Postal Services etc.