Question

Can anyone please help me compare the fiscal policy between Venezuela with South Africa, Spain, and Turkey. Please highlight the key characteristics

Thank you so much

Answer 1

Country	Present Economic condition	Expansionary/ Deflationary	Government Spending	Taxation policy	Export-Import
Venezuela	With the economy verging on collapse and the government clinging tenaciously to power, much-needed reforms will not be addressed by a regime that has proved unwilling or technically unable to move Venezuela back from the brink of bankruptcy and debt default.	Expansionary Policy is being followed	Over the past three years, government spending has amounted to 37.7 percent of total output (GDP)	Both the top personal income tax rate and the top corporate tax rate are 34 percent. Other taxes include a value-added tax. The overall tax burden equals 20.9 percent of total domestic income.	Trade is significant for Venezuela’s economy; the combined value of exports and imports equals 54 percent of GDP. The average applied tariff rate is 10.7 percent. Nontariff barriers significantly impede trade. The government’s legal, bureaucratic, and regulatory policies limit foreign investment.
South Africa	South Africa’s economic growth has decelerated because of declining global competitiveness, growing political instability, and weakened rule of law that in 2017 caused the country’s investment-grade credit rating to be downgraded to junk status, denting investor confidence. The government must maintain macroeconomic stability while facing a combination of rising public debt, inefficient state-owned enterprises, and spending pressures. The judicial system is increasingly vulnerable to political interference, and numerous scandals and frequent political infighting have severely undermined government integrity.	Expansionary	Over the past three years, government spending has amounted to 32.6 percent of total output (GDP)	The top personal income tax rate is 41 percent. The top corporate tax rate is 28 percent. Other taxes include value-added and capital gains taxes. The overall tax burden equals 30.6 percent of total domestic income.	Combined value of exports and imports equals 60 percent of GDP. The average applied tariff rate is 4.2 percent.
Spain	The severe 2017 constitutional crisis triggered by Catalonia’s push for separation will test the strength of Spain’s post–financial crisis economy, the rebound of which was facilitated by structural reforms highlighted by a reduction of the inefficient and over sized government sector, labor market reforms, and restoration of the financial sector’s competitiveness. Resolution of the crisis could threaten fiscal stability. Despite relatively sound economic institutions and transparent regulatory and judicial systems, the indebted public sector is still a drag on growth	--	Government spending has amounted to 43.7 percent of total output (GDP)	The top individual income tax rate has been cut to 45 percent. The top corporate tax rate has been cut to 25 percent. Other taxes include a value-added tax. The overall tax burden equals 33.8 percent of total domestic income	The combined value of exports and imports equals 63 percent of GDP. The average applied tariff rate is 1.6 percent.
Turkey	During earlier periods of political instability, Turkey’s economy maintained resilience thanks to the country’s solid public finances, well-capitalized and well-regulated banking sector, and vigorous, diversified private business sector. The intensification of political instability in the current crisis could have a negative impact on foreign capital inflows. Critical challenges include lack of transparency in government and erosion of the rule of law. The judicial system has been severely disrupted and has become much more susceptible to political influence.	--	Government spending has amounted to 32.6 percent of total output	The top personal income tax rate is 35 percent, and the top corporate tax rate is 20 percent. Other taxes include value-added and environment taxes. The overall tax burden equals 30.0 percent of total domestic income	The combined value of exports and imports equals 47 percent of GDP. The average applied tariff rate is 3.2 perc