The health financing system encompasses three major functions: revenue collection, fund pooling, and healthcare purchasing. This chapter focuses specifically on the first function, “revenue collection,” and examines the various options available to policymakers for raising funds and the implications of different revenue collection mechanisms. It provides a detailed examination of the sources and methods of revenue collection for healthcare in India, analyzing their relative advantages and disadvantages, and critically evaluating these methods in terms of sustainability and equity. In India, healthcare financing is achieved through a combination of revenue collection methods, including taxation, social health insurance contributions, community-based health insurance, voluntary private health insurance, out-of-pocket payments, and external aid such as loans, grants, and donations. Each of these mechanisms differs in terms of timing, source, nature, and amount of contributions, and thus has distinct implications for equity, access to healthcare, cost containment, and fiscal sustainability. Decisions regarding the optimal approach to healthcare financing should be made with careful consideration of how to raise resources in an equitable and efficient manner, taking into account the political, social, and economic context of the country. The chapter brings out the importance of a balanced revenue collection to ensure sustainable and equitable healthcare financing.