{
  "title": "Developing Countries Feel Squeeze From Lower Natural Resource Revenue, Falling Foreign Aid",
  "publication": "IMF Blog, May 4, 2026",
  "sourceUrl": "https://www.imf.org/en/blogs/articles/2026/05/04/developing-countries-feel-squeeze-from-lower-natural-resource-revenue-falling-foreign-aid",
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  "summary": "Fiscal pressures in developing countries make stronger domestic revenue systems more important than ever",
  "sections": [
    {
      "heading": "Key findings",
      "content": "- Nontax revenue from natural resources extraction and foreign aid grants for general spending have fallen by a combined 3.8 percent of gross domestic product since 2000.\n- Gains from tax collection since 2000 amounted to just 2.6 percent of GDP, offsetting only two-thirds of the decline.\n- The decrease in proceeds from nontax extractive revenue was the biggest driver of the overall drop for both low-income developing countries and emerging market economies."
    },
    {
      "heading": "Main drivers and characteristics",
      "content": "- Nontax extractive revenue refers to royalties, profit sharing, and dividends from state-owned enterprises in industries like oil, gas, and mining.\n- Declining foreign aid grants for general spending also contributed to lower public revenues.\n- These revenue shifts increase fiscal pressures and reduce the reliability of public financing sources in affected developing countries."
    },
    {
      "heading": "Policy implications and recommendations",
      "content": "- Closing the revenue gap often requires collecting more tax revenue.\n- Affected countries need sustained investment in domestic tax policy and tax administration.\n- Effective institutions are essential to underpin reforms in tax policy and administration.\n- Capacity development—customized technical assistance and training, often delivered in collaboration with donor countries and other international organizations—supports building expertise and policy frameworks to improve tax systems and institutions.\n- Strengthening domestic revenue mobilization reduces dependence on volatile and declining revenues from extractive industries and foreign support, contributing to fiscal resilience and global economic growth."
    },
    {
      "heading": "Data and analytical resources",
      "content": "- The IMF’s World Revenue Longitudinal Database tracks decades of tax and nontax revenue consistently across 195 economies using data provided by IMF members.\n- High-quality granular data are required to evaluate how governments can raise more reliable, sustainable revenue from within the economy and to identify reform priorities.\n\nMario Mansour and Fayçal Sawadogo — May 4, 2026. IMFBlog, \"Developing Countries Feel Squeeze From Lower Natural Resource Revenue, Falling Foreign Aid.\"\n\n---\n\n\n References\n\n- World Revenue Longitudinal Database\n\nSource: https://www.imf.org/en/blogs/articles/2026/05/04/developing-countries-feel-squeeze-from-lower-natural-resource-revenue-falling-foreign-aid"
    }
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    "Authors: Mario Mansour, Faycal Sawadogo",
    "Published: May 4, 2026",
    "Nontax revenue from natural resources extraction and foreign aid grants for general spending have fallen by a combined 3.8 percent of gross domestic product since 2000.",
    "Gains from tax collection since 2000 amounted to just 2.6 percent of GDP, offsetting only two-thirds of the decline.",
    "The decrease in proceeds from nontax extractive revenue was the biggest driver of the overall drop for both low-income developing countries and emerging market economies.",
    "Nontax extractive revenue refers to royalties, profit sharing, and dividends from state-owned enterprises in industries like oil, gas, and mining.",
    "Declining foreign aid grants for general spending also contributed to lower public revenues.",
    "These revenue shifts increase fiscal pressures and reduce the reliability of public financing sources in affected developing countries.",
    "Closing the revenue gap often requires collecting more tax revenue.",
    "Affected countries need sustained investment in domestic tax policy and tax administration.",
    "Effective institutions are essential to underpin reforms in tax policy and administration.",
    "Capacity development—customized technical assistance and training, often delivered in collaboration with donor countries and other international organizations—supports building expertise and policy frameworks to improve tax systems and institutions.",
    "Strengthening domestic revenue mobilization reduces dependence on volatile and declining revenues from extractive industries and foreign support, contributing to fiscal resilience and global economic growth.",
    "The IMF’s World Revenue Longitudinal Database tracks decades of tax and nontax revenue consistently across 195 economies using data provided by IMF members.",
    "High-quality granular data are required to evaluate how governments can raise more reliable, sustainable revenue from within the economy and to identify reform priorities.",
    "[World Revenue Longitudinal Database](https://www.imf.org/en/topics/fiscal-policies/world-revenue-longitudinal-database)"
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