If a country has no natural resources and limited revenue sources, how do you prioritise its spending needs?

Question

This question is about how Budgeting works-
How can extra revenue be found to fund its future spending needs (e.g. raising taxes– if so, what type)? Are there other alternative sources of revenue?
-Country is semi developed, so less spending on new infrastructure, more on maintenance and law and order.

imf loans for extra revenue for a regular annual budget-hmm i don;t think so.
also-is a ValueAddedTax like GST better for this case compared to an income/corporate tax cos it will keep incentive for investment/ operation high and earn extra revenue by broadening the tax base and keeping burden low. Eg-New zealand!!

Answer 1

Semi developed huh? If a country is semi-developed it should be spending more on new infrastructure and less on law and order since new technologies are being introduced.

Anyway, in this case the country should focus on comparative advantage in services and trade. It should also appeal to aid from other countries by offering labor and procuring land privileges such as mine digging, oil well drilling, waste disposal, military base deployment, and telecommunication establishment. These privileges can be given either to other states themselves or MNCs (multinational corporations) who can provide jobs and financing in return for this opportunity.

As far as budgeting is concerned, the country should make sure that their breadbasket is secured before anything. North Korea and Myanmar are examples of how desperation can lead a citizenry to believe in fanatics when foodstuffs are neglected.

Next, the country should focus on administration needs. If a government cannot operate effectively, then corruption and anarchy will ensue, leading to poor credit ratings by IOs such as the World Bank and the IMF. Officials and officers must be able to get their jobs done without unnecessary disturbances or deterrents.

Once these are taken care of, the country work on optimizing its citizenry's abilities depending upon the climate, environment, culture, and other natural traits. States should focus on pushing forth their strengths rather than trying to make up for what's not available in today's world because the international community has resources to help make up for what it may be lacking. If a country has no apparent advantages, it should look to see how it can help another country succeed at its goals and chip in.

For example, if another state has reached the point of production where it has become an economy of scale (efficiency DECREASES as specialization DECREASES), then the peripheral country we're talking about should offer its labor while having that country export specialists, advisers, engineers, machinery, and supplies. Although our country will become a client, colony, or protectorate of the other, it will be better off than if it wasn't.

Eventually, the country should be able to go off on its own expeditions and develop some opportunities on its own whether that means purchasing up to date telecommunications technology or building higher education facilities, the country should start to train its people in becoming more sophisticated. If it does not, then it will permanently be stuck under the supporter's heel as well as being a juicy target for the supporter's rivals.

Finally, the country should start to focus on human rights. This is where the international community falters most because it puts democracy over development more often then not. What the country should do is bear any penalties which it is dealt, and continue to cooperate with whomever is helping it. This way, the country's development is insured while it continues to improve its standard of living AND human development index.

Answer 2

A with no natural resources and limited revenues would budget as follows:
To raise extra revenue, IMF loans, joint-ventures with business or foreign nationals. Taxation could work but limited revenues would go down even further as incentives to make more money would be stagnant. Issue government or city bonds for infrastructure or maintenance of current conditions. I am against loaning money I am more for loaning technology as a form of payment as bureaucrats in other nations steal the funds for what they are intended for.