ABSTRACT
Governments collect revenues through taxes, user fees and charges, royalties from natural resources, and the sale of goods and services. They also receive income from investments and often from borrowing. These revenues are used to transfer payments to individuals and businesses, pay interest on accumulated debt, and finance general expenditures. Both the spending and revenue-raising activities tend to alter the relative economic position of individuals and families, often by design because income redistribution is one of the main functions of government activity.
