Every day income and expenses are calculated line by line; the difference is your daily balance. Income: production tax (on the value of factory output), income tax (on wages), sales tax (on consumption), tariffs (on imports), export income, the finance sector and tourism. Expenses: building upkeep, policy funding, minister and pension salaries, debt interest. Tap the budget card in the Economy tab to see each line itemized.
There are four taxes: production, income, sales and tariffs. Income and sales tax fill the treasury fast but cut satisfaction and prosperity; tariffs protect domestic production. Move in small steps and watch the approval bar.
When the treasury goes negative you borrow and pay interest daily. Debt is only repaid from budget surplus — so first turn your daily balance positive. If debt passes the ceiling, your facilities go up for forced sale.
Open the budget detail and find the biggest expense. Sell or demolish idle and loss-making buildings, cut policy funding, shift production toward exports. A tax hike is the last resort; it lowers satisfaction too.