General government revenue in the system of fiscal regulation

  • Received December 18, 2019;
    Accepted February 11, 2020;
    Published March 10, 2020
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    Volume 17 2020, Issue #1, pp. 134-142
  • Cited by
    4 articles

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The dynamics of socio-economic processes requires the general government revenue to be adapted to changes in financial and economic conditions. The study aims to improve the scientific and methodological approach to general government revenue in the system of fiscal regulation. The impact of general government revenue on economic growth was estimated using a correlation-regression analysis and the multiplier effect concept. The authors found out that, in order to ensure the macroeconomic stability and accelerate the economic growth in conditions of transformational changes, it is reasonable to increase the share of direct taxes in the general government revenue structure, to implement the prudential and coherent fiscal policy with the strategic goals of the countries’ social and economic development. The authors substantiated that the increased share of direct taxes of the consolidated budget of Ukraine in GDP by one percent causes the real GDP to grow by 2.94 percent, whereas the increased share of the indirect taxes by one percent causes the real GDP to decrease by 0.45 percent; for 2014–2018, 28 percent of taxes are on average withdrawn per unit of GDP growth. The study results indicate that effective fiscal regulation is ensured only by the synergy of its fiscal, regulatory, and incentive functions, the reconciliation of fiscal sustainability and tax neutrality principles.

The article was prepared on the subject of the GDR: “The Financial and Budgetary Strategy for Economic Growth” (No. 0119U100577).

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    • Table 1. Share of general government revenue of the EU countries in GDP, %
    • Table 2. The structure of consolidated budget of Ukraine and its share in GDP, %
    • Table 3. Dynamics of marginal propensity to consume, marginal tax rate, autonomous costs multiplier and taxes in Ukraine