(i) When the outcome of any activity is taken as the base of any budget, such budget is known as ‘Performance Budget’.
(ii) For the first time in the world, the performance budget was made in USA.

(i) Under Article 116 of the Indian Constitution, the budget can be presented in the middle of the year. The reason may be political in nature.
(ii) The existing Government may or may not continue for the year, on account of the fact that elections are due, then the Government places a ‘lame duck budget’. This is also called ‘Vote-onaccount Budget’.

In its narrow sense, it includes only those sources of income of the public authority which are ordinarily known as “revenue resources.”

According to Dalton, the term “Public Income” has two senses — wide and narrow. In its wider sense it includes all the incomes or receipts which a public authority may secure during any period of time.

The state assumes greater roles by creating economic and social overheads, ensuring stability both internally and externally, conserving resources for sustainable development and so on.

The subject ‘Public Finance’ includes five major sub-divisions, viz., Public Revenue, Public Expenditure, Public Debt, Financial Administration and Fiscal Policy.

According to Adam smith, there are four canons or maxims of taxation. They are as follows.
(i) Economical
(ii) Equitable
(iii) Convenient
(iv) Certain
(v) Efficient and flexible

The revenue obtained by the government from sources other than tax is called Non-Tax Revenue.
For e.g. Fees, Fine etc.

When the responsibilities of the state increase, it supplements traditional revenue sources by borrowing from individuals and institutions within and outside the country. This is public debt.

(i) CGST - Central Goods and Services Tax
(ii) SGST - State Goods and Services Tax
(iii) IGST - Integrated Goods and Services Tax

Income tax, wealth tax, corporate tax, capital gains tax.

(i) It involves fresh evaluation of expenditure in the Government budget assuming it as a new item.
(ii) A review is made to justify the project based on the socio-economic objectives and priorities of the society.
(iii) Government of India presented Zero Base Budgeting in 1987-88.

(i) Both are source of public revenue.
(ii) Tax is a compulsory payment but the tax payer cannot claim any specific benefit by paying a tax.
(iii) Fee does not involve compulsion.
(iv) Government provides certain services (e.g.) driving license and charges a fee for it.

(i) The income of the government through all sources is public revenue.
(ii) Public revenue deals with the methods of raising public revenue such as tax and non-tax, the principles of taxation, rates of taxation, impact, incidence and shifting of taxes and their effects.

(i) "Public finance is one of those subjects that lie on the border linè between Economics and Politics. It is concerned with income and expenditure of public authorities and with the adjustment of one to the other". . - Huge Dalton
(ii) Public finance is an investigation into the nature and principles of the state revenue and expenditure - Adam Smith