Central Government Revenue Receipts refer to the total income that the government earns from all sources without creating any liabilities or selling its assets. This means the government does not borrow or deplete its wealth to generate these receipts. They represent regular income used primarily to fund the routine functioning and services of the government. Revenue receipts are broadly categorised into Tax Revenue, which includes taxes like income tax, corporate tax, customs, and GST, and Non-Tax Revenue, which includes interest receipts, dividends from public sector undertakings, fees, fines, and other income sources.

The significance of this indicator lies in its reflection of the government’s fiscal strength and capacity to meet expenditure through its own earnings. A healthy level of revenue receipts indicates strong economic activity, effective tax administration, and efficient public sector performance. It also reduces dependence on borrowing, thereby helping maintain fiscal discipline and keeping debt levels manageable. Revenue receipts are vital for funding essential public services such as health, education, defence, and infrastructure without increasing the financial burden on future generations. Moreover, sustained growth in these receipts allows the government to invest more in development programs and welfare initiatives. Thus, they serve as a key barometer of the government’s financial sustainability and policy effectiveness.