How can you increase public revenue?

1 Tax reform

One of the most common and effective ways to increase public revenue is to reform the tax system. This can involve expanding the tax base, reducing tax evasion and avoidance, simplifying tax rules and administration, and adjusting tax rates and brackets. Tax reform can also aim to make the tax system more progressive, meaning that those who earn more pay a higher proportion of their income in taxes, and more responsive, meaning that the tax system can adapt to changing economic and social conditions.

2 Non-tax revenue

Another way to increase public revenue is to generate more income from non-tax sources, such as fees, fines, charges, royalties, dividends, and profits. These are payments that the government receives for providing specific goods or services, or for using or owning certain assets. For example, the government can charge fees for issuing licenses, permits, or passports, fines for violating laws or regulations, royalties for extracting natural resources, or dividends for owning shares in public enterprises. Non-tax revenue can complement tax revenue and reduce the reliance on borrowing or aid.

3 Public-private partnerships

A third way to increase public revenue is to engage in public-private partnerships (PPPs), which are arrangements where the government collaborates with the private sector to deliver public goods or services. For example, the government can contract out the construction, operation, or maintenance of roads, bridges, schools, hospitals, or utilities to private firms, and share the costs and benefits with them. PPPs can help the government leverage private capital, expertise, and innovation, and improve the efficiency and quality of public services.

4 Green fiscal policy

A fourth way to increase public revenue is to adopt a green fiscal policy, which is a set of measures that aim to promote environmental sustainability and reduce greenhouse gas emissions. For example, the government can impose taxes or fees on carbon, pollution, or waste, or provide subsidies or incentives for renewable energy, energy efficiency, or conservation. Green fiscal policy can help the government raise revenue while addressing the challenges of climate change and environmental degradation.

5 Digital transformation

A fifth way to increase public revenue is to embrace digital transformation, which is the process of using digital technologies and data to improve the performance and delivery of public services. For example, the government can use online platforms, mobile applications, or blockchain to collect taxes, fees, or fines, or to provide information, education, or health services. Digital transformation can help the government reduce costs, increase transparency, enhance convenience, and expand access.

6 Social accountability

A sixth way to increase public revenue is to foster social accountability, which is the extent to which the government is accountable to the citizens for its actions and decisions. For example, the government can involve the citizens in the design, implementation, or evaluation of public policies and programs, or disclose the sources and uses of public funds. Social accountability can help the government increase trust, participation, and feedback from the citizens, and improve the effectiveness and legitimacy of public revenue.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?