Fiscal revenues from non-renewable natural resources
Increased global demand for commodities, especially in large emerging markets such as China and India, has caused sharp price increases and thus greater fiscal revenues associated with non-renewable natural resources. Several Latin American countries have instituted fiscal reforms since 2005 in order to ensure public control over these resources and to increase the fiscal contribution of sectors that export them (hydrocarbons and minerals). While these revenues increased at a faster rate than other government revenues before the crisis, their performance has been roughly 3 times more volatile than overall tax-to-GDP growth since 2000.
Fiscal revenues from non-renewable natural resources continue to be a very significant source of tax revenue in many countries with several countries, such as the Plurinational State of Bolivia, Ecuador, Mexico and the Bolivarian Republic of Venezuela, exhibiting a very high level of dependence on commodity-based revenues (over 30% of the total).
Read the full special feature