Revenue Equalization Reserve Fund

Revenue Equalization Reserve Fund,

Definition of Revenue Equalization Reserve Fund:

  1. The Revenue Equalization Reserve Fund is a sovereign wealth fund of the Pacific island nation of Kiribati.

  2. The Revenue Equalization Reserve Fund is a fund that was established in 1956. The island of Kiribati created the fund in order to manage earnings stemming from the county's phosphate mining industry, which at the time of establishment accounted for over half of Kiribati's government revenue and was the country's largest export. By the late 1970s the country had exhausted its phosphate deposits, and the per capita GDP was cut in half between 1979 and 1981. Since that time, Kiribati has been largely dependent on foreign aid, tourism and the sale of fishi.

  3. A fund established in 1956 by the government for the purpose of stabilizing the economy due to its heavy reliance on phosphate exports for revenue. After its phosphate reserves were depleted in 1979, government revenues declined and the per capita GDP was reduced by 50%. The country now relies on income from abroad and development assistance in order to maintain its fund balance.

Meaning of Revenue Equalization Reserve Fund & Revenue Equalization Reserve Fund Definition