Budget Allocation

[leebangji]

How does a country raise funds for her budget. I have heard a lot of countries talked about trillions of dollars for budget and at the same time, they keep telling the people that they are indebted to IMF,  World Bank and some other neighbouring countries.

How does a country raise money to fund her budget?

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[palle11]

The sources of government revenue is what you are asking of and it is from these revenue generated that budgets are funded or taken care of. Therefore , the government generate resources through taxes, investments and loan like bonds etc...

[bear100]

How does a country raise funds for her budget. I have heard a lot of countries talked about trillions of dollars for budget and at the same time, they keep telling the people that they are indebted to IMF,  World Bank and some other neighbouring countries.

How does a country raise money to fund her budget?

There are different ways to load up country's budget. It depends on many factors, like geoposition, natural resources, population, etc. If you are interested in finding information concerning particular country, simple go to wikipedia

[soham]

How does a country raise funds for her budget. I have heard a lot of countries talked about trillions of dollars for budget and at the same time, they keep telling the people that they are indebted to IMF,  World Bank and some other neighbouring countries.

How does a country raise money to fund her budget?

There are thee main ways for a country to raise funds.

1. Direct tax (Small amount):
It is what we, the common people pay as an income tax. Which is not a very huge or noticeable amount but it is one of the ways to raise funds for a country.

2. Indirect tax (major amount):
This is the major income for the government. There are many indirect tax systems like production tax, sales tax, consumer tax or road tax etc. There are many other types of indirect taxes which makes up for a huge percentage of a country's income.

3. Debt from IMF/World bank or other countries (major amount):
This is project specific. If a government want to undertake a huge infrastructural development activity like building a dam or a cross-country road or a bridge or a metro line etc. IMF and world bank funds such projects. Sometimes other countries also fund such activities in exchange of some favorable terms.

Hope this helps!

[bill gator]

How does a country raise funds for her budget. I have heard a lot of countries talked about trillions of dollars for budget and at the same time, they keep telling the people that they are indebted to IMF,  World Bank and some other neighbouring countries.

How does a country raise money to fund her budget?

This seems like a fairly straightforward question about economics 101; Countries Import/Export goods, charge tariffs, impose taxes, and even acquire things through conquest when they see fit. Are you asking about a specific country, or are you asking as an aspiring world leader? 

Taxes are normally justified to the population through representation, like services, utilities, protection and a functioning society as a whole. As for everything else, well even the aforementioned, politics plays a  big role in what people are willing to do and to whom. Some countries play by "the rules" and others are not very ethical, they launder money, they have black-market ties and practices; it's very difficult to say how a country makes it's money without knowing which country you are talking about.

It's almost like asking how does a man make his money? It depends on the man.

[Fantastic33]

Funds in government comes from different sources such as taxes. Taxes were deducted from employees wether private or government employees. Some taxes are included on the good that we buy, its called value added tax. There is also the sin tax which is added on cigarette... Land and businesses also have taxes... And thats where the government get its capital. Other source of capital are  from government investments..

[Mometaskers]

They keep mentioning debt coz they definitely have debts, seems hard to find a country these days that don't borrow money on a regular basis. These are usually in dollars BTW.

Even without international debt, many countries also borrow from the public. Seems these days, no country can run on tax money alone.

[qwertyup23]

How does a country raise funds for her budget. I have heard a lot of countries talked about trillions of dollars for budget and at the same time, they keep telling the people that they are indebted to IMF,  World Bank and some other neighbouring countries.

How does a country raise money to fund her budget?

Each country has their respective ways on generating income for their public expenditure. They are obligated to improve their economic standing by developing infrastructures and implementing new laws that will further enhance the system for the benefit of the society. Now, all of their budget comes from the taxes of everyone in the country. If you currently have a job, you would see that a portion of your income is taken away from you due to tax fees (though this depends on the country's laws). On the other hand while you pay your taxes, the government in return provides you the benefits (i.e. free healthcare, education for your children, discounts on public transportation, etc.).

The problem is, with too much government expenditure they borrow money to the World Bank in order to loan for their projects. The government cannot print money as this will increase superbly the inflation of one's country and the value of money will decrease due to it being dependent on the number of gold reserve a country has.

[trako]

The items that governments most refer to in budget planning are tax brackets.
private consumption taxes, income taxes, real estate taxes, motor vehicle taxes, insurance premiums, fuel etc. There are many sources of income such as. every arrangement made with that percentage is made by calculating the incomes. Even if they play as small as 0,5%, they make a big income.

[chickenado]

How does a country raise funds for her budget. I have heard a lot of countries talked about trillions of dollars for budget and at the same time, they keep telling the people that they are indebted to IMF,  World Bank and some other neighbouring countries.

How does a country raise money to fund her budget?

Different countries have different ways in getting budgets in different sectors.Taxes is the ultimate source of it .Every item to purchase in supermarkets has value added tax.Every employees have also taxes deducted from their salaries.Anyone who will buid a business pays permits..individually we pay in every transactions that we made.Debts from neighboring countries were already there since i was born and i dont think if its already been paid.Countries can be run by taxes that every individual pays if these taxes were being rightfully handled.

[Hydrogen]

How does a country raise funds for her budget. I have heard a lot of countries talked about trillions of dollars for budget and at the same time, they keep telling the people that they are indebted to IMF,  World Bank and some other neighbouring countries.

How does a country raise money to fund her budget?

This is an old issue & not necessarily related to budget funding.

During the 2008 global economic crisis, many nations desperately needed loans to counter economic slowdown. These nations became indebted to organizations like the IMF (International Monetary Fund), World Bank and other entities.

Hungary, Iceland and others paid off their debt. They then cut ties with organizations like the IMF and World Bank to prevent the meddling which occurred in their politics as a result of them being in debt to bankers. Others were not so lucky and still live in the shadow of the IMF and World Bank who appear to be humanitarian oriented by in reality may be part of a shadow puppet network orchestrating secret agendas across the globe.

[andrei56]

How does a country raise funds for her budget. I have heard a lot of countries talked about trillions of dollars for budget and at the same time, they keep telling the people that they are indebted to IMF,  World Bank and some other neighbouring countries.

How does a country raise money to fund her budget?

There are thee main ways for a country to raise funds.

1. Direct tax (Small amount):
It is what we, the common people pay as an income tax. Which is not a very huge or noticeable amount but it is one of the ways to raise funds for a country.

2. Indirect tax (major amount):
This is the major income for the government. There are many indirect tax systems like production tax, sales tax, consumer tax or road tax etc. There are many other types of indirect taxes which makes up for a huge percentage of a country's income.

3. Debt from IMF/World bank or other countries (major amount):
This is project specific. If a government want to undertake a huge infrastructural development activity like building a dam or a cross-country road or a bridge or a metro line etc. IMF and world bank funds such projects. Sometimes other countries also fund such activities in exchange of some favorable terms.

Hope this helps!

Another way is simply to print more money, this is a form of indirect tax but it is one that is even more damaging to the economy since they tax your wealth and not your income, also many countries offer lotteries and also raise money by applying traffic tickets.

[just_Alice]

How does a country raise funds for her budget. I have heard a lot of countries talked about trillions of dollars for budget and at the same time, they keep telling the people that they are indebted to IMF,  World Bank and some other neighbouring countries.

How does a country raise money to fund her budget?

The easiest way for any country to raise money immediately is just printing it, BUT it shouldn't be much more, than that country actually has (counting resources, goods, money from export), otherwise there will be inflation and it'll become like Zimbabwe. If country doesn't really have much to sell and export the government takes loans and, I guess, they rely on some upcoming projects, or maybe pay back with guarantee of help on special occasions. And, of course, the good old-fashioned taxing )