Own Non-Tax Revenue in economics refers to the income earned by the government—particularly state governments—through sources other than taxes. These include fees, fines, interest receipts, dividends and profits from public sector enterprises, royalties from natural resources, user charges for public services (like water and electricity), and other miscellaneous receipts.

It is termed “own” because it is generated internally by the government without reliance on central transfers or shared tax revenues. For state governments, this forms a part of their own revenue, distinct from central grants or shared taxes under the federal system.

Own non-tax revenue is crucial for enhancing the fiscal autonomy and self-reliance of governments, especially at the state level. Unlike tax revenues, which often depend on broader economic activity and legislative changes, non-tax revenues can be improved through better pricing of public services, efficient management of state assets, and reforms in public sector enterprises.

A higher share of own non-tax revenue reduces dependence on borrowings and intergovernmental transfers, enabling more flexible and responsive governance. For states with limited tax bases, strengthening non-tax revenue sources is vital to meet developmental needs, maintain fiscal discipline, and invest in social infrastructure. It also encourages resource efficiency and accountability in the delivery of public services.