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Public finance: How can non-tax revenue be increased? Focus on improving performance of government-owned commercial entities and services. Choose the correct option.

Difficulty: Easy

By improving the efficiency and profitability of public sector enterprises
By raising income-tax rates
By increasing customs duties
By cutting capital expenditure

Correct Answer: By improving the efficiency and profitability of public sector enterprises

Explanation:

Concept

Non-tax revenue includes dividends/surplus from PSUs, user charges, fees, interest, spectrum/asset receipts, etc.

Reasoning
Strengthening PSU performance directly lifts dividends/surpluses and other non-tax receipts without altering tax rates.

Final Answer
By improving the efficiency and profitability of public sector enterprises

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