| Singapore |
~18% |
~4.8% |
#1 · 83.5 (Free) |
Extremely low violent crime, no terrorism, and no war risk. Routinely ranked among the world’s safest cities/states. |
- The Central Provident Fund (CPF) is a mandatory savings scheme that funds retirement, healthcare, and housing, replacing large public-welfare budgets.
- State-linked entities (e.g., Temasek, GIC) operate on fully commercial lines and contribute dividends rather than drawing subsidies.
- Revenue is raised efficiently via land leasing and a broad consumption tax, funding a very slim civil-service headcount.
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| Liechtenstein |
~20% (est.) |
~2.0% |
Top 5 globally (Free) |
Virtually zero crime, terrorism, or war risk. Defense and monetary stability are outsourced to Switzerland. |
- No standing army and no central bank; defense is delegated to Switzerland for a token fee, removing massive budget lines.
- Direct democracy and strong municipal autonomy make tax and spending hikes politically difficult.
- Social support relies heavily on private and occupational provisions rather than state welfare, keeping the civil service tiny.
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| Ireland |
~25% |
~4.5% |
#3 · 82.6 (Free) |
Very low violent crime; no domestic terrorism or war. Among the safest countries in Europe. |
- An ultra-competitive 12.5% corporate tax rate and business-friendly regulation broadened the revenue base without raising personal tax burdens.
- Welfare is largely means-tested rather than based on the universal social-insurance models common on the Continent.
- Military neutrality eliminates the large defense outlays seen in NATO peers.
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| United Arab Emirates |
~25% |
~3.8% |
#33 · 69.6 (Mostly Free) |
Very low domestic crime and terrorism risk; no war on its territory. Strong rule of law in commercial hubs (Dubai, Abu Dhabi). |
- Hydrocarbon and free-zone revenues historically funded infrastructure and services without broad-based income taxes.
- The federal government is extremely lean; service delivery is decentralized to competitive emirates.
- Major state entities (e.g., Emirates Airline, ADNOC, port authorities) are run as profit-making corporations, not budget-draining ministries.
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| Switzerland |
~33% |
~1.8% |
#2 · 83.0 (Free) |
Among the safest countries in the world; no terrorism or war risk. Crime is very low across all cantons. |
- Direct democracy and mandatory fiscal referenda make major spending increases politically difficult; voters regularly reject new entitlement programs.
- Fiscal federalism pushes tax competition among cantons, disciplining overall expenditure.
- The military relies on a small professional core plus a militia system, keeping standing-army costs far below NATO averages.
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| Malaysia |
~22% |
~4.5% |
#41 · 68.1 (Mostly Free) |
Low violent crime; no war risk. Terrorism risk is minimal and isolated to remote eastern areas. |
- The Employees Provident Fund (EPF) is a fully funded, mandatory retirement scheme that keeps state pension liabilities minimal.
- Government-linked companies deliver infrastructure on commercial, not purely budgetary, lines.
- Recent subsidy reforms (targeted cash transfers instead of blanket fuel/food subsidies) capped consumption-side spending.
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| Chile |
~24% |
~3.0% |
#22 · 72.8 (Mostly Free) |
Lowest homicide rate in mainland Latin America; no terrorism or war risk. Among the region’s most stable democracies. |
- The AFP private-pension system shifted old-age retirement liabilities off the government balance sheet onto individual savings accounts.
- A strict structural-balance fiscal rule tied to copper prices prevents permanent spending ratchets during commodity booms.
- Independent central bank and extensive use of private concessions for highways, ports, and airports limit state capital expenditure.
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| Mauritius |
~25% |
~3.5% |
#30 · 70.6 (Mostly Free) |
Very low crime; no war or terrorism. Consistently ranked the safest country in Africa. |
- No standing army since independence—only a paramilitary police force—eliminating defense spending entirely.
- Export-oriented policies (EPZs) and a competitive tax regime forced the state to stay lean to attract foreign investment.
- A strong private-sector tourism and financial-services backbone reduces the need for state-led development projects.
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| Thailand |
~21% |
~3.2% |
#35 · 67.6 (Mostly Free) |
Low violent crime nationally; no war risk. A localized insurgency in the far-south provinces rarely affects the general population or major cities. |
- Universal health coverage is delivered through an extremely tax-efficient scheme (UCS) costing under 4% of GDP.
- A large informal economy and Buddhist temple / local mutual-aid networks provide social insurance outside the state budget.
- Until very recently there was no universal unemployment-benefit system, keeping transfer payments minimal.
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| Georgia |
~25% |
~5.0% |
#16 · 77.5 (Mostly Free) |
Very low violent crime and terrorism; the interior is generally safe. War risk is confined to Russian-occupied breakaway regions (Abkhazia / South Ossetia) covering roughly 20% of claimed territory. |
- Radical post-2004 deregulation slashed business licenses; a flat 20% tax on corporate and personal income broadened the base with low rates.
- Aggressive civil-service downsizing and digitization (e.g., online government portals) shrank payroll and administrative costs.
- Extensive outsourcing and public-private partnerships replaced direct state provision in utilities, transit, and healthcare infrastructure.
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