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I contribute to the literature by providing additional factors that could affect the incremental budgeting theory and punctuated equilibrium theory (PET) within a budgetary context. Because of the fluctuation in the price of natural resources, I argue that dependence on natural resources could lead to less stable budgets than ones not dependent on natural resources. I also argue that democracy is another source that leads to stability in the budget, relative to countries that are not democratic. I theorize that countries with no democracy and heavy dependence on natural resources will have budgets with more volatility than the rest of the countries. Most of the extant literature focuses on countries that are democratic and not dependent on natural resources. My theory expects these to have the most stable budgets. I extend the literature by comparing the Kuwaiti National Budget (dependent on natural resources and not democratic) to the U.S. Federal Budget (democratic and not dependent on natural resources). The results of all tests are consistent with the expectations of the theory that countries with no democracy and heavy dependence on natural resources have less incremental budgets than nations that are democratic and not dependent on natural resources.