According to U.S. Census Bureau revenue terminology, what are the two broad categories of general revenue?

The correct answer identifies the two broad categories of general revenue as intergovernmental revenue and own-source revenue. This distinction is important because it illustrates how governments at various levels collect and utilize funds.

Intergovernmental revenue refers to funds that one level of government receives from another. For instance, state governments may receive funds from the federal government, and local governments often receive transfers from state governments. This category includes grants, shared taxes, and other forms of financial assistance that can significantly impact budgetary decisions and priorities at the receiving level.

Own-source revenue encompasses the funds that governments generate independently, without reliance on outside entities. This includes taxes (such as property taxes, sales taxes, and income taxes), fees, and charges for services. Understanding this category is crucial for assessing a government’s financial self-sufficiency and ability to fund its operations without external assistance.

Recognizing these categories helps in analyzing the financial health of various government entities and the implications of revenue sources on local governance and service provision.