What is revenue

Income is a term that has extremely widespread use. This concept is used in a variety of meanings. The most common meaning of this word is as follows - receiving cash or material assets as a result of activity.

Income is defined as the total amount of money received in the form of wages, interest, dividends, taxes and entrepreneurial profit. A macroeconomic analysis considers the country's total income or national income. Microeconomic analysis takes into account the receipt of cash or material assets for a certain period of time. Income is also analyzed in terms of a person’s purchasing power.

In the history of pre-revolutionary Russia, revenues that came into the budget were defined as direct revenues, indirect revenues and revenues from regalia and monopolies. Today, the budget consists of revenues from budget funds, tax revenues and non-tax revenues. That is, state revenues are made up of foreign trade operations, foreign loans, foreign aid, which is used to carry out government functions, payments, duties and taxes. The leading role in replenishing the budget is played by tax revenues.

In economics, the concept of "income" has several classifications.

Labor or earned income is the income received for the work performed, and unearned income is the receipt of rent or interest for natural resources or for capital invested elsewhere. In the West, this classification is used to determine the tax rate.

Nominal income is cash income received regardless of changes in price and taxation, and real income is income taking into account changes in prices and tax deductions.

Gross income is the income of an enterprise from the sale of goods and services, property, interest received from the provision of money on credit, the sale of work, revenue and other cash receipts.

Informal activities where income was received are divided into non-market income and illegal income.

The phrase "net income" is the most used and represents the difference between the cost of resources and gross income. Thus, the phrase "net income" has become associated with profit.