Public revenues
The development of public expenditures requires public revenues to cover them so that the state can carry out its function in satisfying public needs. Intervention to meet public needs.
Revenue concept
Public revenues are defined as the financial resources that the state obtains from various sources and that it needs to finance the necessary expenditures and to perform its functions. Public revenues are defined as “the economic resources that the state obtains in the form of cash flows in order to cover public expenditures with the aim of satisfying public needs. The state obtains the financial resources necessary to cover public expenditures mainly from national income within the limits of the national financial capacity or from abroad when these are not sufficient.” Resources to meet the requirements of public spending.
The financial capacity of the state
The level of public spending is related to the extent of obtaining revenues that secure the needs of society. If the state enjoys wide authority, it should not exaggerate it when obtaining revenues, as there are factors that limit the financial capacity of the state and relate to what is known as the national capacity represented in the community bearing the burden. state finances. Financial capacity is particularly concerned with the ability of the national income to bear the tax burden, or what is known as the costing capacity and the state's ability to lend represented by its facilities and institutions, or what is called the lending capacity.
Types of public revenue
State property
Fees
taxes
Penal fines
Donations and gifts
public loans
cash issue
general revenue divisions
1. Division of Public Revenues According to Periodicity:
The criterion for differentiation is the extent of regularity and periodicity of revenues in each year, and they are divided into:
Ordinary revenues: which are repeated and whose estimates are included in the general budget annually, and include regular revenues of the state such as income from agricultural, industrial, and commercial profits, fees, and taxes...
Extraordinary revenues: that do not recur annually and are not obtained by the state on a regular basis, such as loan revenues and new cash issuance.
2. Division of public revenues according to their source.
The criterion for differentiation is the source of public revenue and is divided into:
Original revenue: It is what the state obtains from its "domain" property, and it includes agricultural, commercial, industrial, and financial revenues (shares, bonds...)
Derivative Revenue: What the state receives from the money of individuals, groups, and states through taxes, fees, fines...
3. Division of public revenues according to the state's authority over them.
The criterion for differentiation is the extent of the state’s authority over it. It is divided into:
Economic revenues: which the state obtains without coercion or compulsion, but rather as a legal person owning wealth, such as renting or selling real estate or profits from economic projects...
Sovereign revenue includes what the state obtains forcibly, such as taxes, fees, fines...
Credit income: It includes all types of loans, bonds, and cash issuance.
1. Economic general revenue
State property:
It is divided into two types: public state property and private state property
Public state property (public domain)
These are revenues that the state obtains as a result of its ownership of a group of public assets, including museums, public parks, zoos...
Mostly the state does not get money from the beneficiaries of its public property, but this does not prevent the state from imposing some fees to visit museums, highways...
Private state property (private domain)
They are state property and are subject to the provisions of private law.
Real Estate The state seeks to sell or rent its property. It includes agricultural land, real estate, residential complexes...
Industrial and commercial activities (minerals, energy sources, factories...) through direct management, franchising, mixed management...
Income from financial activities (shares, bonds, interest on loans).
General price
The term general price refers to the price of goods and services produced and sold by the state, and it is one of the means that enables it to achieve a general revenue for some types of goods in order to be independent in determining their price, lest private projects resort to raising their prices and exploiting the extent necessary for the consumption of individuals, such as water, electricity, bread, telephone services, the price of these goods may in a very small proportion exceed the costs of production.
2. Sovereign public revenue
General Fees:
Public fees are considered one of the traditional revenues that appeared in the past and are an important resource of the state’s resources, as they enter the public treasury on a semi-regular basis, but the importance of public fee revenues does not reach the importance of other public revenues such as taxes and revenues of the private domain.
The Executive has no right to impose fees on its own.
Fees are levied on individuals by legislative approval and by statutes.
Administrative decisions and regulations regulating them are issued and laws may provide for exempting certain categories from paying these fees.
The fee is the consideration that an individual pays to the public interests for a specific service that you perform for him upon his request. The fee is usually less than the cost of providing the service, and the difference is paid from the state's public treasury.
Fees help to develop the state by achieving the public interest to satisfy public needs in all fields.
The fees worked to finance public utilities, so the executive authority decided to set the fee, cancel it, or raise its price according to the circumstances, subject to the approval of the legislative authority.
Reducing the burden on the state so that it does not incur additional expenses or search for new resources.
Drawing features:
The fee is a monetary amount: the individual pays in return for obtaining a specific service from one of the state’s facilities, and the requirement for the monetary form of the fee came to keep pace with the modern development in the state’s finances.
Pays the state forcibly:
The forcible fee in return for a service that he receives from the public administrations and utilities of the state, and is imposed by legal rules that have an obligatory character that obliges the individual to pay it.
Service for Fee: The fee is paid by the individual in exchange for a special service obtained by the state. The service may be work undertaken by a public authority for the benefit of the individual, such as settling disputes (judicial fees), documenting and publicizing contracts (authentication fees), or the individual’s use of some public utilities.
It achieves the private benefit besides the public benefit: the individual who pays the fee gets his own benefit that is not shared by other individuals, and it is usually represented in the service performed by the public interests. It is also of general benefit to society.
Fee estimate:
The state determines the value of the fee is paid for some aspects of public activity. Practically, there is no general rule that the state adheres to, while it is in the process of estimating the value of the fee. Rather, there is more than one rule that is taken into account to assess the fee. The estimate of the drawing is the result of the interaction of basic rules.
The first rule: takes into account the proportionality between the service expense and the corresponding fee:
Proportionality is not required for each individual, but it is sufficient that the costs of the service be proportional to the proceeds of the imposed fees.
The purpose of establishing facilities is not to make a profit, so social proportion must be taken into account.
The second rule: the amount of the fee is less than the cost of producing the corresponding service, such as education and health services:
The rule is based on achieving the public and private benefit
The rules of justice require the distribution of utility expenses among the members of the beneficiaries through the imposition of taxes.
The third rule: is that the amount of the fee is greater than the corresponding service expense:
The rule is based on the desire to reduce the turnout of individuals to request the service subject of the fee, such as bathing fees in certain beaches, or the desire to obtain revenues from the public treasury as fees for documentation and publicity.
Fee types:
Judicial Fees: Fees to be paid in the event of disputes between individuals and groups, which the judiciary considers before the judge.
Administrative fees: license to bear arms, birth certificate, real estate registration certificate ...
Economic fees: postage, telephone, markets, and public places.
Distinguishing between fee and tax:
Tax
general drawing
1- It is paid free of charge for a private benefit to the individual and is specified in his name, even if it is aimed at achieving a collective public benefit without allocation.
1- He pays in exchange for a service or benefit specific to the individual and identified in his name.
2- It takes into account the financial ability of the taxpayer in relation to the direct tax, and it increases with the increase in the taxpayer's income.
2- It does not take into account the financial ability of the individual. Everyone pays the same amount.
3- It is used as one of the most important tools of fiscal policy in achieving economic and social goals.
3- It cannot be used as a financial tool to influence economic activity due to its lack of flexibility and poor response to emerging changes.
Distinguishing between fee and general price:
Similarity:
A monetary amount is paid in return for a special benefit provided by the administration to individuals, in exchange for which he obtains a service.
Differences:
The fee is imposed by law, while the general price is determined by an administrative decision.
The public benefit prevails over the private benefit in the fee. As for the public price, the service often represents a private benefit.
Fees are of an administrative nature, and the general price is of a commercial nature.
The general price is left to be determined by the agreement between the state and the beneficiary. As for the fees, they are approved by the state and are not subject to bargaining.
Distinguishing between fee and royalty payment:
Royalty is a sum of money imposed on the property owner because of a private benefit who has returned to his property from works of public interest carried out by the state, such as repairing the facade of buildings...
Similarity: It is in exchange for a public service that brings a special benefit to the individual and is obligatory.
The differences:
Quality of service: The service that corresponds to the royalty is limited to the creation of projects or public repairs. As for the service that corresponds to the fee, there is no restriction on its nature and no limit on its scope.
Payment method: the royalty is paid once, and the fee is paid for each service.
Fines:
They are monetary sums imposed on individuals who violate the law as a punishment for them. The purpose of the fines is to enforce the rule of law. An example of this is the fines imposed by Al-Makam for traffic violations. So the fine is a compulsory payment that does not directly benefit the payer.
Taxes:
The tax is one of the most important sources of public revenue due to its large size on the one hand and on the other hand due to its impact on the economic and social aspects.
In the past, taxes were in exchange for the protection of rights and the provision of financial revenues, the amount of which should suffice only the expenditures of purely public goods. In the modern state, its role has evolved to achieve economic and social goals, such as redistribution of income and wealth, economic balance, and balance in the balance of payments.
It is a sum of money that the state forcibly deducts from individuals for free with the aim of generating revenues to cover state expenditures and also to achieve other economic and social goals.
The tax is one of the most important sources of public revenue due to its large size on the one hand and on the other hand due to its impact on the economic and social aspects.
In the past, taxes were in exchange for the protection of rights and the provision of financial revenues, the amount of which should suffice only the expenditures of purely public goods. In the modern state, its role has evolved to achieve economic and social goals, such as redistribution of income and wealth, economic balance, and balance in the balance of payments.
It is a sum of money that the state forcibly deducts from individuals for free with the aim of generating revenues to cover state expenditures and also to achieve other economic and social goals.
Subsidies and gifts:
Subsidies and grants are a type of expenditure that the state pays to certain social groups or public and private bodies without compensation or to external parties:
External subsidies - what countries receive from other friendly countries.
Internal subsidies - the central authority of the authority for a local.
Gifts - what is offered as a choice by individuals to the state.
3. Fiduciary public revenue
General Loans:
BASIC FINANCIAL POLICY TOOL: For economic guidance. The state is forced to spend large amounts that the regular periodic revenues do not allow to cover, so it usually resorts to borrowing the amounts it needs, especially:
When the tax rate reaches its optimum size, any increase in taxes will cause the economy to deteriorate.
When the tax increase has violent reactions from taxpayers.
Cash Issue:
It is considered one of the sources of revenue that the state may resort to in the event of a decrease in order to finance its expenditures.
Through the monetary issue, the state exchanges what it has of foreign currencies in exchange for a money instrument whose metal value is less than its face value (inflation financing).
This may have undesirable economic effects because the amount of money that is put on the market would lead to higher prices and a lower purchasing value of money (the United States under its President Johnson) and for the reasons of the war with Vietnam resorted to this source.