ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The majority of the states receive their largest source of revenue through intergovernmental revenue. The other largest source of revenue for other state governments is taxes which includes general sales tax, income tax, selective sales tax, corporate tax, and property tax.

Detailed explanation-2: -State and local governments collect tax revenues from three primary sources: income, sales, and property taxes. Income and sales taxes make up the majority of combined state tax revenue, while property taxes are the largest source of tax revenue for local governments, including school districts.

Detailed explanation-3: -The three main sources of federal tax revenue are individual income taxes, payroll taxes, and corporate income taxes. Other sources of tax revenue include excise taxes, the estate tax, and other taxes and fees.

Detailed explanation-4: -The principal source of States own tax revenues is sales tax which accounts for about 60 per cent of the total.

Detailed explanation-5: -The final 32 percent of state general revenue came from intergovernmental transfers. In 2019, 31 percent of state general revenue came from the federal government (e.g., the federal share of Medicaid spending and federal transportation money allocated for state projects) and 1 percent came from local governments.