Fiscal Regulation Research Articles

Analysis of Value Added Tax Revenue in Indonesia from 1990 to 2022

In enhancing welfare and advancing Indonesia, the government plays a crucial role in promoting economic cooperation and implementing effective fiscal regulations, one of which is through optimizing revenue from the taxation sector. Value Added Tax (VAT) is a key tax instrument that serves as an important source of state revenue. As a significant tax instrument, VAT revenue plays several crucial roles, including supporting the state's fiscal revenue, funding infrastructure development, and providing public services. Therefore, this study aims to analyze the factors influencing VAT revenue in Indonesia. This research uses time series data covering the period from 1990 to 2022. The analytical method employed is the ECM (Error Correction Model) analysis to examine both long-run and short-run effects. The independent variables used in this study include Government Consumption, C-Efficiency, and Import Tariffs. Meanwhile, the dependent variable is VAT revenue in Indonesia. The results of this study show that government consumption and C-efficiency has a positive and significant impact on VAT revenue in both the long-run and short-run. Meanwhile, the import tariff variable negatively and significantly impacts long- run revenue, but has no effect in the short run.

Impact of fiscal regulation on regional carbon intensity: assessing the carbon emission reduction effect of transparent government revenue and expenditure

ABSTRACT Fiscal regulations enhance fiscal compliance and reduce undue government intervention in economic performance, which may have important implications for low-carbon development. However, few empirical studies have investigated the impact of fiscal regulations on carbon intensity. Based on data from 278 cities in China from 2005 to 2020, this study constructed a difference-in-differences model using the release of the new Budget Law to investigate the impact of fiscal revenue and expenditure regulation on regional carbon emission intensity. The empirical results indicated that fiscal regulations can significantly reduce the intensity of carbon emissions. The mechanism tests indicate that fiscal regulation can optimize the allocation of local governments’ fiscal revenues and expenditures and improve infrastructure and innovation. Heterogeneity analyses indicate that the effect of fiscal regulation on reducing carbon emission intensity is more obvious in regions with high historical emissions and a high proportion of polluting industries. Based on the empirical results, the government should continuously improve fiscal transparency and the efficiency of fiscal fund use to reduce the impact of unreasonable fiscal revenue and expenditure on carbon emissions intensity.

City Regionalism in the Global South: Evidence from Sub-Saharan Africa

This study investigates city regionalism within the context of state restructuring in postcolonial Ghana. To understand Ghana’s emerging city regionalism, first, we argue that planning is marshaled as an institutional instrument to materialize the state’s vision of remaking national territory and internationalizing the state. Second, city regionalism is a political process leveraged by a unique power geometry. The study adopts Ghana’s Northern Savannah Ecological Zone (NSEZ) regional plan to elucidate city regionalism in the Global South. Our findings reveal the central government’s inclination toward endogenous territorial restructuring, by which city region development is centrally orchestrated and state guided. In addition, city regionalism is influenced by the geostrategic ambitions of international capital, especially Chinese capital, which seeks to draw investment into the built environment and infrastructure. The central government’s customization of a regional governance agency, the Northern Development Authority (NDA), and the decentralization of land resources give rise to a “dumbbell” power structure. The concentration of legal and cohesive power in the central government and an overly privatized land ownership regime characterize this dumbbell power structure. The operation of the NDA is thus a scaffolding with no substantial power. The central government exercises restrictive fiscal regulation over regional and local states in the NSEZ. These two dimensions hamper the effective implementation of the regional plan. Collaboration between different levels of state administration, traditional authorities, and civil society actors is imperative to address the complexities of city regionalism in postcolonial Ghana.

Some aspects of consıderable models of oıl and gas ındustry development

The article examines some assumptions and problems of the world economic theory, it is pointed out that these assumptions are based on the characteristics of the economic structure in different parts of the world where the distribution of world production and the global exchange of goods, services and other results of human activity take place, of course the oil and gas industry is not left out in this matter shown. Moreover, taking into account the importance of its impact on world politics, it has been pointed out that the field is one of the most relevant objects of economic analysis today. The characteristic features of modern globalization are given in the article. In such a situation, it was suggested that since the real scale of the application of methods that increase oil production in Azerbaijan is not able to prevent the deterioration of the structure of reserves, it will not be possible to make a big positive change in the exploitation of extractable reserves. The article also discusses the application of econometric models in economic research on the oil and gas industry. As a means of research and prediction of natural processes, the mathematical modeling method has been shown to be very widespread in oil and gas extraction. The observations made were summarized and it was shown that there is a systematic progress in the dynamics of the world economic system in the conditions of modern globalization, the main characteristic features of modern globalization were classified and given by the author, the creation of optimal conditions for the operation of the oil and gas industry as a result of the administrative and fiscal regulation of the state in the conditions of globalization was noted, and also the oil and gas industry some aspects of the theoretical models of the future development of the field have been studied and shown, taking into account its specific characteristics and in the context of the natural decrease of the volume of production. In the article, it was determined that one of the most important issues is the correct determination of the oil and gas reserves of the field, its calculation by separate reserve categories. Experience shows that it is very important to calculate these resources in different ways, to analyze the indicators of field development in detail, and to compare them with real indicators in order to implement one or another project indicators. The basis of these methods is the determination of reserves and their role in the technical-economic justification of the options for field development. This gives special relevance to such issues in the oil and gas industry and considers their constant improvement in the conditions of the market economy appropriate. The developed article is dedicated to the study of such issues.

Сбалансированность интересов участников распределительных отношений в контексте обеспечения региональной бюджетной безопасности

This study aims to clarify the concept of budget resilience and substantiate an approach for selecting indicators of regional budget resilience. A content analysis of scientific sources in the field of budget resilience was conducted, and current approaches to defining the concept of budget resilience were classified. The author’s interpretation of the concept is presented, emphasizing the need to select indicators that assess regional budget resilience by considering the interests of public funding recipients. Within this framework, groups of recipients—regional authorities, economic entities, and the population—are identified, and their interests are determined. A system of indicators is proposed to ensure budget resilience in the region, reflecting the level of interest satisfaction among these groups. A comparative analysis of the balance of recipients’ interests based on the results of budget policy and the budget process in the Russian Arctic regions was carried out, and trends in their economic interactions under conditions of global instability were analyzed. The study found vulnerabilities in the budget resilience system, manifested in the infringement of recipients’ interests. Changes in financial market conditions and resource prices led to a decrease in financial results for companies and a reduction in regional output redistributed through budgets, resulting in welfare loss for the regions and their populations. To address the situation, it is necessary to intensify investment activities and business development in the regions and optimize the fiscal regulation system, which will ultimately contribute to the growth of budget and household incomes. Changes in these indicators should be monitored not only in national currency but also in dollar terms to assess the recipients’ financial well-being on an international scale. Future research will focus on selecting specific indicators and their threshold values for assessing budget resilience in the Russian Arctic regions.

Monitoring of the BEPs actions plan implementation in the context of fiscal regulation: scientific substantiation of the methodology

Since January 2017, Ukraine has joined the OECD's Inclusive Framework and committed itself to implementing the BEPS Minimum Standard. The national tax system is similar in structure to the tax systems of developed countries. At the same time, the country's recognition of generally accepted standards for combating aggressive tax planning requires significant adaptation of the legal framework. Monitoring of the legislative process of implementing the BEPS Action Plan is an important area of further development of state regulation in the tax area and an effective means of achieving the proper quality of tax legislation and creating a modern and efficient tax system. The regulatory assessment of the state of national legislation will facilitate a detailed understanding and analysis of possible positive effects, achievement of results in the fight against tax evasion and base erosion, and avoidance of legal conflicts and contradictions. Monitoring the legislative process of implementing the BEPS Action Plan measures allows us to identify the necessary areas for improving the national legislative system and track the positive and negative effects of the application of legislative norms. Monitoring of regulatory legal acts is a tool for the development of future-oriented legislation, as it involves the study of legislation to obtain information necessary for assessing, forecasting, controlling and formulating recommendations for improving the regulatory framework and ensuring its optimal condition. As a member of the OECD Inclusive Framework, Ukraine has implemented the BEPS Action Plan Minimum Standard through significant adaptation of the national tax legislation and its approximation to the provisions of international tax instruments. Monitoring of the legislative process of implementing the BEPS Action Plan is an important area of development of state regulation in the tax area and an effective means of achieving the proper quality of national tax legislation and further development of an effective tax system.

Forced Fiscal Regulation: Impact Factors and Efficiency

Forced Fiscal Regulation: Impact Factors and Efficiency

Evidence from China's shipping sector on the impact of fiscal measures in enabling a low-carbon economic transition

The Green Economy Initiative aims to achieve economic development while minimizing carbon emissions by implementing a low-carbon economy across all sectors. It is noteworthy that ships play a significant role in global commodity transportation, accounting for approximately 80–90 percent. However, this also leads to a surge in fossil fuel consumption and alarming pollution levels. The data utilized in this article spans from 2010 to 2022 and specifically focuses on the shipping industry, drawing from information collected in 20 different provinces of China. Multiple panel regression models were constructed to analyze the influence of fiscal policies on facilitating the transition toward a low-carbon economy. In addition, a vector autoregression model was employed to examine the interconnected dynamics between low-carbon transition and budgetary guidelines. The findings indicate that tax-based policies demonstrate an inverted U-shaped relationship with low-carbon transition, whereas transfer payment policies exhibit an N-shaped pattern. The shipping sector is actively embracing low-carbon practices, largely due to incorporating digital technologies that mitigate the adverse impacts of fiscal regulations.

Exploring the Dynamics of Legal Incentives and Restrictions in Budget Law

This article examines various scholarly perspectives from legal theorists, administrative law experts, and financial experts concerning the relationship between activities, financial undertakings of the state and municipality, and budgetary activities of the state and municipality. Specifically, it examines the distinctive features of budgetary activities and the methods by which legal incentives and restrictions are implemented within the domain. Legal incentives and restrictions are conceptualized as paired fiscal regulations, each with its own classification. The author categorizes these incentives and restrictions as paired budgetary and legal norms, delineating them into compensation and incentive categories.

Russian experience in applying environmental payments in the context of fiscal regulation of business involvement in ESG processes

Russian experience in applying environmental payments in the context of fiscal regulation of business involvement in ESG processes

Energy Marketing and Fiscal Regulation of a Competitive Energy Efficiency System

Introduction. Developing and implementing the principles of the energy-saving approach concept actualizes the need to define energy marketing tasks and fiscal regulation tools for energy conservation to increase the efficiency of using resources in the energy sector.
 Aim and tasks. The aim of this study is to form and substantiate the expediency of implementing directions for energy marketing development and fiscal regulation of implementing energy-saving measures to achieve the goals of national economic recovery and large-scale energy modernization.
 The results. The main tasks of energy marketing in monitoring the current world environment based on information and communication technologies have been defined and substantiated, and that should become a source of competitive advantage in the electric energy market and obtain significant income for market participants. It has been proven that using oligopoly models to determine the equilibrium condition of the electric energy market will make it possible to form a corrective managerial influence on the development of a competitive energy industry. With a 3-fold increase in the demand parameter, it has been established that the electricity market reaches equilibrium under the equilibrium model of supply functions with larger electricity production volumes and lower prices than in other models. It has been proposed to introduce tools for fiscal regulation by introducing energy-saving technologies into a single system of solutions to increase energy efficiency and energy saving.
 Conclusions. Analysing and generalizing the features of energy market participants’ interaction using a wide range of oligopoly models made it possible to develop recommendations for implementing strategic security-related tasks. If these tasks are not realized, the risks of losing energy independence will increase, and the economic potential necessary for the restoration and further development of the national economy will continue to be lost based on the principles of sustainable development and a systematic approach to setting and achieving the goal of the national energy-saving policy. The feasibility of introducing tools for budget regulation is also justified, which will create a robust creative basis for implementing an effective strategy for managing the demand for energy resources.

The impact of exchange rate and exchange rate volatility on tourism demand using disaggregated data

AbstractThe present study investigates the impacts of exchange rate and exchange rate volatility on inbound tourism demand in Mauritius, using annual data covering the period 1999–2019 and a panel autoregressive distributed lag model. In particular, we consider 17 major tourism markets for Mauritius. The sample is further divided into Eurozone (7 countries) and non‐Eurozone (10 countries) for additional insights. The results show that in the long run, both the exchange rate and its volatility have negative and significant impacts on tourism demand across the three samples considered, while income in the home country has a positive and significant effect on tourism demand. On the other hand, relative price is found to have a significant and negative effect on tourism demand only for the overall sample of 17 countries, while for both the Eurozone and non‐Eurozone, the impact is insignificant. The empirical results suggest that policymakers should give consideration to stronger monetary and fiscal regulations to increase tourism demand.

Legal foundations of stimulating fiscal policy in the EU

The relevance of the study lies in the fact that in the realities of modern economic dynamics and the transformation of socio-economic systems of the EU countries, the legal framework of stimulus fiscal policy is becoming a key tool for restoring economic growth, supporting businesses, and ensuring sustainable social justice. The purpose of this study is to systematize and analyse the specific legal instruments and provisions that underpin stimulus fiscal policy in the EU. The methods used include analytical method, statistical method, functional method, system analysis method, deduction method, synthesis method and comparison method. The study examined various aspects of fiscal regulation aimed at supporting economic development and social stability in the EU. The study is based on the analysis of tax mechanisms, financial instruments and budgetary strategies used to stimulate certain aspects of the economy. In particular, the impact of tax exemptions and privileges on entrepreneurship and investment activity was examined, as well as the effectiveness of fiscal measures to support small and medium-sized enterprises in countries such as Ireland, Poland, and Germany. The latest EU initiatives to stimulate innovation and green technologies were also studied, considering their legal and financial aspects. The main challenges and obstacles that arise in the process of implementing stimulating fiscal policies are highlighted, and possible ways to overcome these difficulties are identified. The study also draws attention to the interaction between fiscal policy and other areas of legislation, such as social and environmental policy, in particular, in the context of achieving sustainable development goals. The practical significance of this study is to provide concrete recommendations for EU governments on how to optimize legal and fiscal instruments aimed at stimulating economic development, innovation, and social stability

Features of taxation of rational environmental management as a factor of sustainable growth in Russia

The article is devoted to the study of the problems of fiscal regulation of the rational use of natural resources to achieve the goals of sustainable economic growth and improve the quality of life of the population. According to official statistics, it should be noted that it is difficult to identify individual problems on the impact of direct taxation of the use of natural resources on the effectiveness of environmental management in Russia. Great practical importance in theoretical and applied economics is attached to strengthening the environmental component in taxation. The purpose of the study was to analyze the prospects for the development of the implemented directions of the tax policy of rational environmental management to ensure the environmental safety of Russia. In modern tax systems, a separate aspect highlights the directions of tax regulation of the use of natural resources, providing a fiscally significant effect on budget revenues at all levels and increasing the environmental potential of rational environmental management. Various general scientific methods were used in the research process, including: abstract-logical, comparative analysis, generalization, as well as tabular and graphical methods. When studying the practical experience of tax regulation of effective environmental management, SWOT analysis methods, as well as variable and trend analysis are used. The authors provide a systematic analysis of the practice of ensuring budget revenues of the subjects of the Russian Federation and their compliance with the policy of rational environmental management, as well as determining the causal relationship of the considered features of taxation of the use of natural resources in Russia. The procedure for taxation of environmental management is important for the formation of fiscal sustainability and ensuring high efficiency of tax policy in the field of rational environmental management. The state policy of taxation of environmental management should be based on the principle of preserving the interest of investors in investments in environmental protection measures, providing tax incentives and preferences for the introduction of new waste-free production technologies. The prospects for further development of tax regulation of effective environmental management should be aimed at activating public-private partnerships by stimulating private investment in the creation of new and modernization of existing assets of the "green" economy, as well as optimizing environmental monitoring.

Modern Tax Trends and Economic Growth in a Turbulent World: Insights from Developed and Developing Economies

The article examines recent trends in tax level and structure changes within developed and developing economies in relation to economic growth. The study’s significance stems from increasing geo-economic turbulence and emerging risks in the global economy, necessitating fiscal regulation. The analysis spans the period from 2009, post the Great Recession, to the present day. We tested the hypothesis that discernible patterns could be identified through statistical analysis regarding the relationship between tax indicators (level and structure) and economic growth indicators. However, no such clear patterns were found. In essence, it cannot be definitively concluded that reduced tax levels and/or increased indirect tax shares do explicitly foster national economic growth. Tax impact on economic growth varies significantly across developed and developing economies, presenting a complex and nuanced picture. The nature and strength of this influence are largely shaped by the specific circumstances of each location and period. In order to identify their unique impact, counterfactual analysis is required. In the course of further research, it is important to consider, firstly, the increased fiscal activism of the post-pandemic period: in this case, the research outcomes may be different from those obtained for the period already examined. Secondly, considering the ongoing processes of geo-economic fragmentation, it is recommended to re-examine the influence of taxes on economic processes. This investigation should adhere to the evolving framework of new macro-regions worldwide, rather than the conventional dichotomy of developed and developing economies. Participants within these macro-regions, interconnected through supply and value chains, will need to work together to align their tax rules and policies for mutual benefits.

MECHANISM OF TAX REGULATION OF ENVIRONMENTAL MANAGEMENT

Introduction. Ensuring sustainable development is one of the main problems of the modern world. Humanity, in the process of simplifying its life, causes harmful effects on nature and the environment as a whole. In order to reduce the negative impact and achieve economic and social benefits, most countries introduce various environmental taxes, fees and other payments. In today's realities, they play an important role in generating state revenues, but there is no effective mechanism for their use. Therefore, the analysis of the current state of development of environmental taxation and the mechanism that will ensure the rational use of natural resources are important in today's conditions. The purpose of the article is to analyze the existing mechanism of budgetary and fiscal regulation of nature use and to justify proposals for its further improvement in accordance with today's requirements. Methods. The following methods were used in the course of the study and to present its results: analysis, synthesis, generalisation, specification, statistical, graphical. Results. The main features of environmental taxes are determined. The author analyses the share of environmental taxes in the GDP structure of the EU countries and Ukraine. The advantages and disadvantages of environmental taxes are presented. The principles that regulate the institute of environmental taxation are considered. The author's own vision of building a tax mechanism for regulating environmental management, which includes budgeting and distribution functions, is proposed. Conclusions. Implementation of an effective tax mechanism for regulating environmental management requires careful consideration of specific environmental problems, economic conditions and the regulatory framework of a particular country. The functioning of such a mechanism is rational, which will focus not only on filling the revenue component, but also on their use for environmental protection measures.

Теоретичні аспекти фіскального регулювання економічного розвитку держави

The current socio-economic situation of Ukraine can be characterized as difficult and tense as a result of military operations on the territory of the country, numerous destruction of infrastructure facilities, energy capacities and long-term decline, lack of modernization of production, wear and tear of fixed assets almost to zero. In these conditions, the issue of finding incentives from the state to carry out modernization measures for the restoration and creation of new energy capacities, which are based on new types of generation, is acute. For example, generation from renewable energy sources. Balanced fiscal policy and regulation can act as such a unique state development tool. Therefore, the purpose of the article is to determine the peculiarities of using fiscal regulation tools in the institutional space of the economy to support the development of certain industries, and primarily energy, with special attention to the experience of EU countries that have achieved significant success in using fiscal stimulation for the development of energy, especially renewable energy. In the modern economy, the state plays a key role in the regulation and development of the institutional space. For this, various instruments of fiscal regulation are used, which allow the state to influence economic processes and create favorable conditions for business development and investment stimulation. The experience of the EU shows that the most frequently used tool of fiscal support for the development of economic sectors, and primarily energy, is the use of energy subsidies and state intervention related to specific initiatives. The use of energy subsidies and state intervention in EU countries has already brought impressive results. There are already a number of countries in which the amount of electricity produced from renewable energy sources has already exceeded the amount of energy from traditional sources. Wide use of EU experience in Ukraine regarding fiscal support for energy development can help the development of the economy and the post-war recovery of the energy sector based on the development of new energy sources. The conducted research allows us to conclude that fiscal regulation is a powerful tool that governments can use to stimulate economic growth and development. Tax policy, government spending, budget deficit and debt management - all these tools can be effectively used to achieve the country's economic goals.

Conceptual Approaches to the Concepts of Tax and Budget Federalism

In the work carried out, the theoretical aspects of budget and tax federalism were explored, taking into account the diversity of proposed conceptual approaches to their content and the lack of a unified approach to defining these concepts. The vagueness and diversity of interpretations of budgetary and tax federalism reduces their scientific validity and certainty, which hinders their effective implementation in the process of developing management decisions. Features of the organization of the system of state and municipal government in the Russian Federation in matters of delimitation of budgetary and tax powers between levels of government lead to the emergence of many problems, the key of which is the high level of differentiation of the subjects of the Russian Federation in terms of budgetary security. The purpose of the study was to develop a conceptual approach to understanding the concepts of “fiscal federalism” and “tax federalism” based on existing scientific definitions, as well as taking into account the peculiarities of their implementation in the Russian Federation. To carry out the work, methods of fundamental developments in the field of financial theory, scientific generalizations and comparative analysis were used. The results of the study were theoretical generalizations and analysis of the practical implementation of fiscal regulation mechanisms, as well as the author’s definition of the concept of “tax federalism”, and the key elements of its focus were highlighted. The final part of the article formulates the main conclusions based on the results of the analysis of the theory of budgetary and tax federalism, characterizes the features of their implementation in the Russian Federation, reveals the economic essence of tax federalism, its functional basis for the purpose of improving the mechanism of interbudgetary relations.

The Challenges of Decentralization Fiscal Regulations: Experience from the Philippines

<div><table cellspacing="0" cellpadding="0" align="left"><tbody><tr><td align="left" valign="top"><p>This research aims to understand, analyze, and detail the experience of fiscal decentralization in Indonesia and the Philippines. It explores the main challenges faced in implementing fiscal decentralization policies and valuable lessons that can guide other third countries planning to expand their local entities' fiscal authority. By comparing the experiences of the two, we can explore the similarities and differences in approaches and analyze their impact on economic development and local empowerment. The results show that decentralization in the Philippines is comprehensive and has one of Southeast Asia's most substantial legal bases. Moreover, each tier or each type of local government has a rather direct relation to the central government, especially in fiscal relationships, and is relatively independent compared to other countries in the region.</p></td></tr></tbody></table></div>

Regulating local government debt within growth trade-offs: a case study of China’s fiscal consolidation policy

ABSTRACT Local government debt is integral to China’s fiscal framework. Faced with mounting debt risks, China’s central government launched an expansive fiscal consolidation in 2016. Drawing on in-depth interviews and a case study, our research reveals that this measure signifies China’s introduction of de facto fiscal regulations. These regulations have prompted local governments to navigate the complexities of growth objectives and fiscal mandates. Our findings suggest that traditional consolidation strategies are not always effective in the distinct local context of China. As a result, local budgets are increasingly dependent on revenues from land-transfer fees. Notably, the consolidation plan incorporates provisions that allow potential ‘loopholes’ for local authorities, potentially compromising its overall effectiveness. This study sheds light on the intricate dynamics of local debt management, the Plan’s stipulated measures, and the overarching economic context, offering insights into the fiscal challenges faced by China.