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International Futures Help System

Government Revenue

The model represents five revenue streams from taxes on incomes on household incomes before taxes and transfers (HHIncBTT) and firm income before taxes and transfers (FirmIncBTT), which are the labor and capital shares of value added, respectively. Those streams are: household income taxes (HHTAX), household social security/welfare taxes (HHGOVSS), firm income taxes (FIRMTAX), firm social security/welfare taxes (FIRMGOVSS), and indirect taxes (INDIRECTTAX). We have no database to distinguish social security/welfare taxes assessed on households and firms. In each revenue equation there are exogenous multipliers that the user can manipulate to simulate changes in revenue streams ( hhtaxrm , etc.) and total government revenues ( govrevm ). In addition there is a multiplier on revenues (MulRev) whose calculation we can see in the discussion of balancing of revenues and expenditures, and whose application lags one year behind the calculation. Some governments also have net domestic revenues from state-owned enterprises, but the model does not represent this stream (which is, in any case, often actually negative).






Total domestic government revenues, before consideration of external revenues in the form of foreign aid (GovRevBA) is computed from the five streams, after summing the social security or welfare taxes across households and firms (SSWELTAX).



It is useful also to compute the overall tax rate as an output indicator.


For aid recipients only, the amount of government receipts adjusts government revenues.

if AIDr >0 then


There are no dynamics yet in place for local government expenditures (GOVREVLOCAL). The model now has placeholder variables for net revenue transfers to local governments from central ones (GOVREVLOCALFRCEN) and the direct imposition of taxes at the local level (GOVREVLOCALTAX), but they are now set at 0.0 because they are not yet supported by data in the model and no computations drive or use them.