---
title: "Resource Revenues: Where Do They Go?"
description: A mineral deposit is finite and so are the taxes governments derive from a project.  This infographic takes a look at the choices a government needs to make.
image: https://www.prospectorportal.com/hubfs/ResourceRev-Infographic-01.png
---

Weekly Nugget

# Resource Revenues: Where Do They Go?

A mineral deposit is finite and so are the taxes governments derive from a project. This infographic takes a look at the choices a government needs to make.

[ Nicholas LePan ](https://thenugget.prospectorportal.com/author/nicholas-lepan)

 Jun 6, 2022

---

Being well endowed with resources may be beneficial for a developing country, but an abundance of resources with finite lifespans can make it difficult for governments to decide how to best spend or invest their wealth.

There are a series of choices policy makers need to make, each with own pros and cons: 

*Should countries invest abroad or domestically?*

*Should revenues be consumed with public or private spending?* 

*Should revenues go towards real assets or financial assets?*

*Should citizens receive payment directly or should it be spent on public infrastructure?*

*What happens after the resource is depleted?*

The infographic below uses the [research of Amir Lebdioui](https://www.wider.unu.edu/publication/fiscal-stabilization-economic-diversification) to walk through the consequences of government decisions over resource revenue. 

![ResourceRev-Infographic-01](https://www.prospectorportal.com/hubfs/ResourceRev-Infographic-01.png)

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