You work in a team that supports decision making at the center-of-government on

You work in a team that supports decision making at the center-of-government on matters related to national fiscal policy in the fictional country Pluto • Pluto is a “resource-rich” country with large reserves of Lithium • Broadly,fiscalpolicyconsistsofthreeelements: – Government spending: determining how much will the govt. spend in the short and long-term – Government revenues: approving and overseeing measures to increase/ decrease govt. revenues > Resourcerevenues(revenuesfromsaleofnaturalresourcesand associated products) > Non-resourcerevenues(taxes,fees,levies,etc.) – Governmentborrowing:overseeinggovt.debtandmakingdecisionsto • Historically, the country has been heavily reliant on its Lithium industry, both from a GDP and govt. revenue perspective • In its current 10-year growth plan (launched 2 years ago), the country has outlined an ambitious plan to diversify the economy (increase non-Lithium GDP and govt. revenues) • A key element of this plan are 10 “flagship projects”, that aim to super charge development of certain regions and/ or sectors • To activate and execute these projects, some investment from the govt. is required • Over the last two years all projects have developed feasibilities and the overall request for govt. funding is PUR 2.1 trillion, distributed evenly across the next 8 years increase/ decrease this