Question

Use of taxes and subsidies in natural resource policy

Answer 1

When expenditures exceed taxrevenue, a government accumulates debt. A portion of taxes may be used to service past debts. Governments also use taxes to fund welfare and public services.the government must produce enough amount of money for the financing. As we all know the government is responsible for providing the people with several services that the people need such as hospitals, sanitation etc.

Health:- The government should build hospitals and provide different health services to the public.
Communication and technology:- It is till the responsibility of the government to established linkages of communication and transportation to the different places throughout the country.
Defense:- The government should provide security to the people by providing the armed forces the armaments as well as establishing national defense program. In food security; still the government should ensure the production of sustainable food for the people.
Sanitation:- The government should established proper sanitation for a clean environment. In the maintenance of the natural resources; it is the responsibilities of the government to utilize ensures and protect the natural environment.
Energy:- The government is responsible for the sustenance of energy supply for the countries use. These are just among of the many functions of the government among others.

In order to deal with all of these, the government needs a huge amount of money to cater with all the finances. All of the above mentioned services needs fund to run.Natural resourecs policy refers the management of natural resources and the rules and regulation about how to use them. every country having our natural resources policy like they make some rules for the natural resources, we take example from any country where goverment classified the natural resoures in only goverment use natural resources like uranium, thorium, gold, silver and another is for all use like iron , copper, nickel etc
.Subsidies to the production of natural resources have both trade-distorting and adverse environmental consequences. Both of these effects have a common origin in the frustration of the resource-allocation function of the market when natural resources do not reflect the full social costs of production. Three different conceptual and institutional routes to defining new international norms on natural resource subsidies could be pursued, depending on whether the focus is on trade policy, on conservation of a particular natural resource, or on soft law to encourage sound management of natural resources. One strategy focused on soft law would be to introduce the issue into theAsia Pacific Economic Cooperation forum in the form of economic instruments for full-cost internalization.