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KENTON-DAU LLC

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
Country

Estonia

Solomon Islands

Luxembourg

Denmark

Sweden

Norway

New Zealand

Turkey

Botswana

Cuba

Czech Republic

Kazakhstan

Chile

Finland

Australia

Iceland

Nicaragua

Netherlands

Switzerland

Paraguay

Slovakia

Poland

Germany

South Korea

Fiji

Austria

Peru

Honduras

Seychelles

Trinidad and Tobago

Uruguay

Guatemala

Tunisia

Hungary

South Africa

Slovenia

Papua New Guinea

France

Samoa

Bolivia

Guyana

Swaziland

Israel

Belgium

Costa Rica

Ecuador

Mali

United Kingdom

Burkina Faso

Morocco

Cameroon

Rwanda

Canada

Colombia

Spain

Italy

Vanuatu

Ireland

Ivory Coast

Uganda

El Salvador

Belize

Mexico

Bahamas

Jamaica

Portugal

Mauritius

Kenya

Madagascar

Togo

Barbados

Mauritania

Niger

Senegal

Greece

Ghana

United States

Egypt

Nigeria

Equatorial Guinea

Cape Verde

Japan

Brazil

Dominican Republic

Indonesia
Ratio Revenue to Debt

3.32

2.66

1.66

1.45

1.13

1.13

1.06

0.99

0.95

0.86

0.86

0.74

0.73

0.73

0.71

0.68

0.68

0.66

0.65

0.60

0.59

0.59

0.57

0.57

0.56

0.56

0.56

0.55

0.52

0.49

0.49

0.48

0.48

0.48

0.48

0.47

0.47

0.47

0.47

0.47

0.46

0.45

0.44

0.44

0.43

0.42

0.40

0.40

0.39

0.39

0.38

0.38

0.36

0.34

0.34

0.33

0.33

0.30

0.30

0.30

0.29

0.29

0.29

0.28

0.27

0.27

0.26

0.26

0.25

0.25

0.25

0.25

0.24

0.24

0.22

0.21

0.21

0.21

0.20

0.15

0.15

0.13

0.12

0.06

0.02
Copyright Kenton-Dau LLC 2021. 
Disclaimer - The information on this site is not personalised advice and is intended for general informational purposes only.

  • 100x Return Potential
  • Why Launch Products Based on the New Design?
  • No Fees
  • Institutional Bootstrapping
  • Revenue Share
  • Branton
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