Sorry for my ignorance, but I was doing research and noticed that the US's budget is made up of taxes. Is that for all countries? Where is the line between the economy and the government budget? Are natural resources used for government spending?
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1$\begingroup$ Welcome to Economics SE. You have a better chance of getting answers if you ask one question at a time. I recommend you split this into three parts and post them as individual questions. $\endgroup$– GiskardCommented Jun 7, 2015 at 22:46
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3 Answers
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The answer to your first question is no.
For example in Saudi Arabia only foreign residents are taxed. The state can afford to do this because it owns the oil fields and receives a lot revenue from them.
In Russia the oil and gas companies gave 52% of the federal budget. Part of this is in the form of taxes, but it is mostly the profit of Gazprom, the state owned gas company. The Russian government also collects personal income taxes as well as other kinds, so taxes are also a source of their budget.
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Possible revenue sources of government
- Taxes
- Sovereign funds investment (Norway, UAE)
- Natural Resources (Saudi Arabia, Russia)
- State Owned Enterprises
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Budgets are often made up things which are not tax in some instance rent from assets such as natural resources (good example is Norway or Saudi Arabia) or in case of many African countries foreign aid makes up big part of the budget.
