NationStates Jolt Archive


GDP/Budget Calculation Formula

Spyr
08-12-2003, 18:42
Ive noticed a lot of debate/dispute over national budgets and expenditures, and decided to throw this out there.

Personally, I used to use the pipian GDP calculator, but (as has been made clear by many people) civil rights are a pretty poor basis for figuring out government budgets... maybe 'tax rate' has a tiny bit of an effect too...

So, I tried to draft a basic formula for a national budget, so that I could calculate such matters:

B = (PxI)xT

B=Budget P=Population I=Income (I=GDP/P) T=Tax
GDP=Gross Domestic Product

This has been somewhat oversimplified, but it works within the limits of the game.

a) First, you need to determine Income. NS doesnt accout for cost-of-living, so we'll have to ignore that, and just use an incorrect but workeable
formula, I=GDP/P (this isnt really income, but GDP per capita.... just be
aware and let it slide). Conveniently, this particular equation has already
been calculated for you, based on your Economy rating... there are lists somewhere or other on the forum, and the pipian GDPcalc may still be useful for uncovering this #, if nothing else.

b) Multiply this by your population (as listed on your nation page). This is
(roughly) your GDP.

c) Multiply the result by your tax rate, as listed on your nation page. This
is your national budget. Some people will dispute the nation page tax number, since there are a number of different taxes. I thus assume that the tax rate on any nation page is the % of income tha goes to taxes, not just the income tax).

d)Now, not all of one's budget is spent on the military, so one must determine how much budget is given to the military. Given the # of expenses a government must pay for across all departments, I drafted the following list, based in the info displayed on one's nation page:

Effectively ruled by: 35%
Devotes most of its attentions to: 25%
Mainly concerned with: 20%
Concentrates mainly on: 18%
Juggles:15%
Secondary priority: 10%
On the Agenda: 8%
[not mentioned]: 4%
Recieving almost no funds in comparison: 1%

multiply the national budget by this % to get your military budget.

e) Of your total military budget, you can calculate military expenditures.
You could go the complex route...
Maintenance Costs: [total of all military expenditures x 10%]
Salary: [# of staff x {GDP per capita for an economy one level above your
own}]
Staff Expenses: [# of staff x {GDP per capita x2}]
and on and on and on.... fuel, ammunition, transportation, sick leaves and medical benefits, research, amongst innumerable other things.

or, you can simplify, and assume that a consistent, small (0.5%-3%) aquisitions budget is available annually.

Anyway, thats my contribution to the NS budgetary discourse. Any comments/anything I seem to have missed?