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Public Revenue: Definitions, Classifications, and Key Types

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Understanding Public Revenue

Concept: Public revenue refers to sums of money received by public bodies, intended to finance public spending.

Key Features of Government Revenue

  • They are monetary amounts.
  • They possess a public character, determined by their destination and the receiving entity (titular).

Examples: Public vs. Non-Public Revenue

  • Backup CD, payment to download music (Not Public Revenue): These are monetary amounts not received by a public entity and are not intended for public expenditure.
  • Traffic Fine (Is Public Revenue): This is money paid to and received by a public entity, intended to cover a public payment or expenditure.
  • IRPF (Personal Income Tax) (Is Public Revenue): This is an amount of money received by a public entity, intended to finance public spending.

Classification of Public Revenues

Public revenues can be classified based on several criteria:

A. Based on the Legal Institute of Origin

  • Tax Revenue: This is the most significant source of public income, including fees, special contributions, and taxes proper.
    • Quantitatively: Taxes provide the largest portion of revenue for public authorities.
    • Qualitatively: Taxes are specifically established by law for the purpose of generating public income.
  • Credit Revenue (Public Debt): Income obtained when public authorities borrow funds (e.g., issuing bonds).
  • Heritage Revenue (Patrimonial Income): Income derived from the state's assets (patrimony), which includes goods and economic rights that the government can sell, rent, etc.
  • Monopolistic Revenue: Income generated from activities where the state holds a monopoly.
  • Other Income: This category includes various sources such as participation in state revenues by other public entities, allocations from the state budget, and transfers of funds.

B. Based on Frequency

  • Ordinary Revenue: Income received regularly and predictably (e.g., most taxes).
  • Extraordinary Revenue: Income that is non-recurring or exceptional (e.g., proceeds from the sale of a major state asset).

C. Based on the Owning Public Entity

Revenue can belong to different levels of government or public bodies:

  • State Level (e.g., national taxes, traffic fines issued by state authorities)
  • Autonomous Communities (CCAA)
  • Provincial Bodies
  • Local Entities (e.g., City Halls, District Councils - local income)
  • Public Universities
  • Other specific public entities

In-Depth: Economic Income (Patrimonial Revenue)

Concept: Economic income, also known as patrimonial revenue, is public revenue derived from the exploitation and alienation (sale or transfer) of assets belonging to public entities. This is regulated by Law 33/2003 of November 3, on the Heritage of Public Administrations.

Special Arrangements & Sources of Economic Income

  • Revenue from the exploitation and alienation of assets of public entities.
  • Business Heritage (income from publicly owned enterprises or commercial assets).
  • Forestry Resources.
  • Mining Resources.
  • Water Resources.

In-Depth: Income from Public Debt

Income from public debt refers to the funds obtained by the state through borrowing. Key aspects include:

  • Regulatory Sources
  • Definition
  • Legal Regime (Régimen Jurídico)

Regulatory Sources for Public Debt

  • Article 135 of the Spanish Constitution (CE).
  • Articles 94-105 of the General Budgetary Law (LGP) (Law 47/2003 of November 26, General Budgetary).

Concept of Public Debt (as per Art. 92 LGP): Public debt encompasses funds borrowed by the State or its autonomous bodies. These borrowings generate future expenditure obligations for these entities, as also referenced in Article 135.2 of the Spanish Constitution.

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