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Sources of public finance:internal sources of public finance

Answer Text:
Sources of public finance:
Internal sources of public finance(public revenue).
a. Tax: This is a compulsory payment levied by the government on individuals and firms without any direct benefit to the payer.
b. Fines and penalties-These are the charges imposed on individuals, firms and corporations who break the laws of the country.(offenders)
c. Fees; These are the payments charged by the government for the direct services it renders to its people e.g. road licence fee, import licence fee.
d. Rent and rates: Charged on use of government properties e.g. game parks, forests e.t.c
e. Dividends and profits: These are the income received from the government direct investments e.g. income/surplus from public corporations.
f. Interest from loans-This is the interest on loans advanced by the government to firms and individuals through its agencies.