Government Tax Revenue to Debt Ratio
Governments with large income from taxes relative to their debt are likely to experience less pressure to default on their bond obligations. This could be especially true during times of financial crisis.
Credit ratings are a poor indicator of the likelihood of default during a systemic event.
The following shows the tax revenue to gross national debt ratios for a selection of governments. A ratio greater than 1 means the government receives more revenue from taxes than it holds in debt.
Data source:
https://countryeconomy.com/legal/sources
Credit ratings are a poor indicator of the likelihood of default during a systemic event.
The following shows the tax revenue to gross national debt ratios for a selection of governments. A ratio greater than 1 means the government receives more revenue from taxes than it holds in debt.
Data source:
https://countryeconomy.com/legal/sources