Non-tax revenue refers to government revenue from all sources other than taxes called nontax revenue. These are incomes, which the government gets by way of sale of goods and services rendered by different government departments. Its two sources are:
1. Commercial Revenue (Profit and interest): It is the revenue received by the government by selling the goods and services produced by the government agencies. For example, profit of public sector undertakings like Railways, BHEL, LIC etc. Government gives loan to State Government, union territories, private enterprises and to general public and earns interest receipts from these loans. It also includes interest and dividends on investments made by the government.
2. Administrative Revenue: The revenue that arises on account of the administrative function of the government. This includes:
(i) Fee: Fee refers to a payment made to the government for the services that it renders to the citizens. Such services are generally in public interest and fees are paid by those, who receive such services. For example, passport fees, court fees, school fees in government schools,
(ii) License Fee: License fee is a payment to grant a permission by a government authority. For example, registration fee for an automobile.
