Economy

The budget balance of your territory is the result of all incomes and expenses specific to this territory such as taxes, alaries and maintenance costs.

Budget can also be negatively affected by Waste. It represents incomes lost to tax fraud, bad management, corruption and 'black economy'.

Taxe incomes
Tax Incomes- "Total amount of tax generated from the sales of goods and services."

The ability to modify taxes comes with the Tributes knowledge. The default tax % is 20%, this is the figure used to calculate 'voluntary contributions' that appear when first enacting barter. For every 5% after 25% tax a loyalty penalty of 10 is incurred upon all territories. Taxation may be increased up to 90% but it is recommended to stay within 50-60%, otherwise goods and services may become unaffordable and consumption will drop.

Territory Tax Modifier:


 * City (No modification)


 * -75% Colony
 * -100% Outpost
 * -100% Occupied Territory

Waste
Waste - "a result of low territory administration. It represents incomes lost to tax fraud, bad management, corruption and 'black economy'."

Waste is a % taken from tax incomes based on waste sources

Sources of Waste:


 * Local administration: Having a value of less than 100 for your administration will create waste. The amount of waste generated on positive administration is negilible while negative administration generates much more waste. Therefore at minimum at least have positive administration in all cities. Note that the administration produced in a city from any source is reduced by amount of tiles away from capital * 10%.
 * State's corruption: Waste created by weak or negative state power.
 * Population's corruption: Waste created based on population. Population also reduces the amount of administration generated by a flat amount / population.

Combatting Waste:


 * Waste Reduction Services: By using the Taxcollect.png Tax Collector you can gain up to 30% waste reduction. Waste ranges from 0-100%, fulfilling tax collection need prevents waste from ever reaching >70%.

Bonus = 30 * Population access %


 * Scribes: Scribes are the only method of generating administration in a city beyond policies.
 * <4-5 Tiles Distance from Capital: 40% administration reduction makes it extremely difficult to maintain positive administration even with scribes. So to make as much money as possible, maintain a core of cities close to your capital.

Buildings upkeep
Cost of upkeep for all building with an upkeep cost.

Infrastructures upkeep
Cost of walls.

State salaries
Cost to pay all current state workers.

Trading balance
Each Item to be imported will be buy by the state at the price where it was exported, and then be sold at the price of the imported place