Revenue System Research Articles

A Local Government Revenue System under Macroeconomic Pressure - The Case of Poland

This study analyses macroeconomic factors, especially the level of GDP and its changes, in terms of their impact on the revenues of Polish local governments from 1999 to 2016. The importance of the factors in managing local finances is growing because of the increasing threats of globalisation and economies becoming more vulnerable to exogenous shocks. This article attempts to identify the structural weaknesses of the local government revenue system in Poland in the context of macroeconomic circumstances. It follows from our research that the property tax and general state grants are relatively insensitive to GDP changes and that they are capable of ensuring local revenue stability during a crisis. Greater sensitivity to economic fluctuations is shown by shared income taxes. The study analyses Central Statistical Office and Eurostat data using an advanced research approach, the key elements of which are cointegration analysis and a vector error correction model.

Fiscal Decentralization in the Slovak Republic: Revenues and Expenditures

The aim of our article is to identify the development of the financial system of revenues and expenses of territorial self-government created by the application of fiscal decentralization in the conditions of the Slovak Republic during the period 2009-2018. This is based on the international methodology which divides revenue into five areas. The expenditure areas correspond to the classification according to the functional classification and are reported in relative terms. By dividing of Slovak territorial self-government into local and regional level, we will be able to break down the aggregate data reported in international statistics as well as nationwide values of the Slovak Republic. The result of our work is the assessment that local self-government has higher average tax revenues over the period under review, a lower dependence on central government, a wider range of competencies, and higher expenditures.

Análisis de las medidas tomadas a favor de la disminución de la evasión tributaria en Chile para el período 2014 – 2017

La evasión tributaria es una problemática frecuente y conocida en la actualidad. Esto se lleva a cabo mediante actos ilícitos y poco éticos, lo que hace que el Fisco recaude menos ingresos tributarios que los debidos, lo que induce a que se eleve la carga tributaria para los contribuyentes honestos.El propósito de esta investigación es dar a conocer las medidas implementadas por el Servicio de Impuestos Internos, para el período 2014-2017, con el objeto de disminuir la evasión tributaria nacional.Esto se llevará a cabo mediante análisis documental, por medio de los Planes de Gestión de Cumplimiento Tributario emitidos por el ente fiscalizador para el período referido, Cuentas Públicas y una carta emitida por la Directora Regional SII de Valparaíso a modo de respuesta, siendo estos codificados a través de las categorías y subcategorías de análisis en el software ATLAS TI.Finalmente, se han identificado las formas y figuras más frecuentes de evasión, siendo una de ellas la emisión de facturas falsas por parte de los contribuyentes. Las medidas que se mantuvieron en el tiempo para aminorar el incumplimiento tributario, se realizan bajo acciones presenciales y no presenciales. Por otro lado, la efectividad de dichas medidas impuestas por medio de los PGCT, fue evaluada por medio de indicadores de cumplimiento, donde el mayor rendimiento fue por medio de las auditorías tributarias.

System of tax revenues forecasting in Ukraine: theory and reality

The article is devoted to the problem of improving the system of forecasting tax revenues in Ukraine. Forecasting tax revenues in the budget system is a key tool for implementing the state tax policy. This process represents a systematic work on the calculation of tax revenues for the future. The purpose of tax forecasts is to identify, for a certain time period, tax revenues, taking into account their economically justified level.The author proved that this sphere of public administration and economic-analytical practice requires improvement, taking into account progressive developments, which proved their effectiveness in the western countries. The analysis of the forecasting errors of the main budget-generating taxes in Ukraine is carried out by comparing the forecast indicator at the end of the period (taking into account changes that were made during the budget year) with actual values.The article describes the method of forecasting tax revenues. In the given model the level of VAT is influenced by GDP growth, the national currency rate and the growth of VAT in the previous period. The individuals' income depends on the growth of GDP, the dynamics of the national currency rate and the growth of VAT, on the dynamics of excise tax. As for the corporate income tax, it is influenced by the growth of the national currency, the growth of VAT, while this indicator is related to GDP.The method of forecasting tax revenues proposed provides more accurate forecast data than the officially approved Method for predicting budget revenues, which gives grounds for considering it as a promising forecasting tool that deserves further study and improvement.

System of local budget revenues and its development on example of the appropriate budget

The analysis of the role of local budgets in the conditions of market economy as one of the most effective tools for creating a favorable financial climate and ensuring economic equilibrium at the micro level has been carried out. The problem of forming, executing and searching for ways to improve the system of income part of local budgets is investigated in order to increase the level of social and economic development of a particular region. The analysis of the dependence of economic and social stability, the proper standard of living of the population on the correct and consistent implementation of the budget process (system) at the local level is analyzed. The analysis of achievement of real autonomy of local budgets, full financing of both own powers and powers transferred to the local level in the process of decentralization, improvement of intergovernmental relations, increase of efficiency and efficiency of using budget funds are carried out. Changes in fiscal and tax legislation and new approaches to the formation of the revenue part of local budgets have been analyzed. A new mechanism of budget regulation and equalization has been explored as a tool for aligning local budgets' fiscal capacity instead of a balancing system. The present state of the income base of local budgets in Ukraine is analyzed on the example of the budget of the city of Kharkiv; the role of local taxes and fees in the process of forming the revenue part of local budgets is explored. A comparative analysis of the indicators and structure of the revenue part of the Kharkiv city budget for 2015-2018 is made. Generalized results of the process of improving the system of inter-budgetary relations. The shortcomings of the current formula for distributing intergovernmental transfers (equalization grants and funds transferred from local budgets to the state budget) are analyzed. The proposed directions for improving the system of local taxation to increase the volume of local budget revenues from their own sources, the most important of them being the deduction of personal income tax in local taxes. The principles of development of the system of local taxation in Ukraine, the implementation of which in the future will lead to strengthening the revenue base of the budgets of local self-government bodies.

Sports Facilities: The Transition from The “Cost System” Model to The “Revenue System” Model

The transition from the “cost system” model to that of the “revenue system” is one of the main goals still to be achieved by the Italian sports system. In recent years, there have been many factors that have slowed down this transition phase, starting with the complexity and length of the bureaucratic procedures required for implementing the various projects, as well as the actual difficulty for private and public stakeholders to invest in sports facilities. This article is a summary of the most important experiences in Italy with regard to the development and construction of sports facilities resulting from the encounter between the world of Real Estate and sports clubs in the various disciplines. In particular, the article analyses the technical, economic and financial arrangements that have made it possible to implement the projects, and the main problems that have been encountered. The article focuses on the comparison of some of the most important initiatives carried out at the European level in the field of improving sports facilities, with particular regard to the revenues generated by the stadium (subscriptions, catering, etc.) and the regulatory aspects (Stability Law 2014).

Volatility of Internally Generated Revenue and Effects of Its Major Components: A Case of Akwa Ibom State, Nigeria

In this work, volatility of Internally Generated Revenue of Akwa Ibom State with the contributory effects of its components was the major interest. Autoregressive Conditional Heteroscedasticity ARCH (1) model adopted revealed volatility in the IGR. This motivated investigation of the components as contributory factors to the volatility. The OLS regression of IGR volatility on the K-components revealed the contribution of each component to the IGR volatility. The F test result showed overall fitness of the regression model. Individual T test placed tax revenue volatility higher than any other component. The volatility in the tax revenue is explained by the inconsistency in the growing trend of the tax revenue. This is attributed to laxities in the revenue generation mechanism, therefore posing challenges to the revenue system. The revenue generation system in the state requires sound leadership in the Board of Internal Revenue, good revenue driven policy, transparent tax revenue consulting and innovative approaches by the labour force for improved revenue system. Government willingness to address the prevailing issues would enhance stability in the revenue generation, therefore, helping to reduce volatility and cope with the challenges of financial planning in Akwa Ibom State.

Research on Perfecting Government Non-Tax Revenue Management System

At present, China’s fiscal revenue system consists of two important components. One is tax revenue and the other is non-tax revenue. With the continuous expansion of the scale of non-tax revenue and the phenomenon of irregular management, some non-tax revenue in China has become the main source of dismembering financial functions, reducing the efficiency of capital use, disrupting economic order and breeding corruption. Since the reform of non-tax revenue touches on the interests of those with vested interests and all parties have different views on the reform, it is difficult to reform non-tax revenue. As we all know, economy is related to a country’s life and death. Economy is the top priority of the country. The development of the country depends on economic growth. However, many people ignore the impact of non-tax revenue on the economy, resulting in the country not making full use of non-tax revenue to achieve economic growth. Therefore, it is extremely important to study the non-tax revenue management system from the perspective of the impact of non-tax revenue on the economy. This paper focuses on the promotion and suppression of non-tax revenue to economic growth and puts forward some constructive suggestions on improving the management system of non-tax revenue.

Неподаткові надходження в системі доходів Державного бюджету

Неподаткові надходження в системі доходів Державного бюджету

Modelling alternative student loan schemes for Brazil

This paper simulates student loan schemes for Brazil. A copula approach is applied to simulate dynamic earnings paths for graduates. Repayment patterns are then simulated for time-based and income-contingent loan designs. The results show that the Brazilian time-based scheme involved unsustainable repayment burdens for many graduates and contributed to the scheme's high default rates. We also show that the new income-contingent scheme is also likely to involve high taxpayer subsidies. We consider alternative designs with different strengths and weaknesses but favour an income-contingent scheme with a loan fee, repayment rates at 50% of current income tax rates and an interest rate at the government's cost of borrowing upon graduation and above initial tax threshold. We conclude by emphasising that full involvement of the federal revenue system is more desirable than the present approach of employer withholding. This would increase the earnings base and reduce costs, which is important for Brazil's current precarious fiscal situation.

Forecasting Moroccan Tax Revenues: An Analysis Using International Institutions Methodologies and VECM

<p><em>The forecast of tax revenues is based on several methodologies. The literature review of empirical studies has concluded that the main ones are; the effective tax rate approach, the marginal tax rate approach, the elasticity approach, the regression approach and the analysis of co-integration. These approaches are advocated by International institutions, especially the International Monetary Fund (IMF) in its technical assistance of developing countries and its trainings to officials. Thereby, this paper aims to examine these different approaches, to apply them on Moroccan data and to compare their results in order to improve the forecasting system of Moroccan tax revenues. It turns out that the forecast of government revenue is a tough task that relies on the perfect knowledge of the predictable variables context and the awareness of the various external factors that can influence the future achievements. Moreover, regular comparisons of the forecasts and the revenue recorded are found to be fundamental to assess the quality of the estimates in order to increase the accuracy of predictions.</em></p>

An Investigation on the Mutual Effect between Tax Revenue and Economic Growth

Purpose - Taxes cover all aspects of society, especially in terms of resource allocation and economic growth. In reality, the tax revenue is often used to measure the quality of a country's economy. The relationship between tax revenue and economic growth has been paid much attention by academic circles. Due to this background, this paper attempts to investigate the mutual effect between tax revenue and economic growth. Research design, data, and Methodology - The annual datum form 1980 to 2017 are employed to conduct an empirical analysis under the vector error correction model. In this paper, the GDP is treated as an independent variable. The tax revenue is treated as a dependent variable. Furthermore, a menu of statistic approaches will be used to testify the mutual effect between tax revenue and economic growth. Results - Via the co-integration test, the results report that the tax revenue has a positive effect on economic growth in the long run. Through the vector error correction estimation, the results also report that the tax revenue also has a positive effect on economic growth in the short run. Conclusions - This paper provides a view that the tax revenue is a kind of a determinant to promote economic growth. Therefore, the China's government should pay much attention to the improvement of tax revenue system so as to maintain a high-speed economic growth.

Has Economic Competition Improved China’s Provincial Energy Ecological Efficiency under Fiscal Decentralization?

The study of environmental-oriented total factor energy efficiency considering pollutants as a non-expected output has attracted wide attention, but few studies have included social welfare into the above framework for analyzing China’s provincial energy ecological efficiency (EEE). In addition, China’s fiscal decentralization and economic competition have created tremendous momentum for economic growth; however, research has been lacking on whether they have improved China’s energy utilization, pollution control and social welfare level. To fill these gaps, by applying the 2000–2016 panel data from 30 provinces and considering the social welfare condition, we use the slacks-based measure data envelopment analysis (SBM-DEA) method to calculate EEE and build empirical model to test the relation between EEE, fiscal decentralization and economic competition. The results reveal that, firstly, in the last 16 years EEE has been getting worse and the situation of the middle and western areas of China are poorer than in the eastern area, with the middle area still deteriorating further. Secondly, economic competition among local governments aggravates the provincial EEE in China, while the high degree of fiscal decentralization in state governments significantly contributes to improve the EEE; and the co-impact of economic competition on EEE has been negatively strengthened against the background of fiscal decentralization. Thirdly, the influence of economic competition on EEE presents a regional difference; economic competition makes the degree of EEE go down in the east and middle regions, while by contrast, economic competition has helped the EEE level in western regions. The conclusions point out that the temporal trend of EEE in various regions of China, and the economic competition actions adopted by most Chinese local governments to enhance their own financial strength, have not improved energy efficiency and pollution control capability, and has reduced the social welfare of the region. Accordingly, policy proposals are that the Chinese government can adjust the fiscal and tax revenue system and preferential tax system of the central government and local governments and curb competition between provincial jurisdictions.

Project Financing Models for Toll Road Investments: A State-of-the-Art Literature Review

In greenfield toll-road projects, financial sustainability has been a major issue. Many toll roads cannot be operated. Although most of Indonesia's 24 toll road concessions have already been signed by the Toll Road Authority, most of them were caused by financing problems. Three problems have been identified as potential sources of this unsustainability, such as the uncertainty of long-term project revenues, budget constraints provided by the government, and inadequate government support for land acquisitions. This paper aims to investigate the state-of-the-art innovative financing models recently introduced to address financial problems by using a desk study and meta-analysis. The findings are an earmarked tax revenue system, deep discount bonds, take-out financing, tax increment financing, land leases, deferred debts, and private donations.

Dynamic capacity allocation for airlines with multi-channel distribution

Due to fierce competition in markets, recently, many airlines have faced the challenge of reducing channel distribution costs. However, channel distribution decisions are often made separately from inventory allocation decisions in practice. Thus, in this study, we propose a dynamic programming model to derive the optimal policy and investigate customer-shift behaviours in a problem setting with the above two issues combined. The numerical experiment results illustrate that introducing the channel distribution into the airline revenue system significantly improves the revenues and efficiently reduces the channel distribution costs. The improvement comes mainly from a better match between channels and fare classes and a subsequent risk reduction of revenue losses.

FORMATION OF LOCAL BUDGET REVENUES IN THE CONDITIONS OF DECENTRALIZATION OF FINANCIAL RESOURCES

Introduction. Increasing the profitability of local budgets is an important issue on the way to the plundering of territorial communities, because local budgets take the main place in the socio-economic development of the territories. Particular relevance of this issue comes in terms of decentralization reform, which gives new opportunities for increasing thefinancial base of local budgets. Purpose. The purpose of the paper is to identify the peculiarities of the formation of revenues of local budgets of Ukraine in the conditions of decentralization of financial resources. Results. The theoretical questions of formation of the revenue part of local budgets are considered. The structure of the distribution of tax and non-tax revenues between the levels of the budget system of Ukraine, the role of inter-governmental transfers in the system of budget revenues of the combined terri-torial communities are investigated. The influence of decentralization reform on formation of the revenue part of local budgets is determined. Conclusions. The changes that have been made to the budget legislation in the process of decentralization reform have affected the structure of distribu-tion and source of local budgets, and strengthened the financial base of local authorities. However, it is precisely from the efforts of local self-government, the adoption of quality management decisions depends on the rational and effi-cient use of budget funds and the successful development of the community.

Oregon: Growing and Uncertain Spending Commitments

Author(s): Henkels, Mark; Steel, Brent S. | Abstract: The foremost challenge facing the Oregon Legislature confronts nearly all state and localgovernments today: meeting growing and uncertain spending commitments while funding thepublic employee retirement system adequately. There is more than magnitude to this problem.The solutions are constricted by a rigid revenue system, funding patterns locked in by party politics,an initiative system that fosters spending commitments more easily than revenue raising,and strong judicial protections of public employee contractual guarantees. To capture the contextof the budget debates of the Winter/Spring of 2017, this paper examines the nature and legaciesof the November 2017 election, Oregon’s broad economic context, and the core budget debateswithin Salem.

Study on the influencing factors and default risk of government debt

Taking Chinese SY city as an example and by using the step-wise regression method, this paper firstly analyzed the influencing factors of the size of government debt. Then the BS model and naive model were used to study the default risk of government debt in SY city. The research results show that the level of economic development and local government fiscal revenue have a positive impact on the control of debt risk, while local government fiscal expenditure and debt holding subject structure and the total structure of the debt risk control have a negative impact. Finally, this paper put forward some suggestions on how to construct a reasonable tax revenue system for local government to optimize the main structure of government debt and control the total amount of government debt to solve the government debt risk.

Agent Technology in Hotel Business

The main aim of this paper is to analyze the possible ways of using of agent technology in hotel business on the example of Russian Federation. According to key findings, Russian hotel market has seven distinct states. The occurrence of next state can be predicted so we have some kind of decision-making system or early warning system. In addition, characteristics of these states may be used as a target (potential) in revenue management system of hotel enterprise instead of rack rate and maximum occupancy. Presently it is necessary to understand that complex research methods would be used for forecasting and decision-making in modern economic conditions. So, agent technology can be a good solution for understandings of hidden relationships and finding optimal response in hospitality and tourism.

The Influence of the Register of Non-Tax Revenues on the Efficiency of the Non-Tax Revenue System in the Republic of Croatia

Non-tax revenues and parafiscal charges in most cases represent a limiting factor for the business sector and are an additional burden for citizens. In accordance with the recommendations of the European Commission and the Croatian national strategic documents, a rationalisation of the system of non-tax revenues is necessary to achieve a further lessening of the burden of economic subjects and citizens and to foster economic growth. The aim of this paper is to analyse the non-tax revenues in the Republic of Croatia, analyse their role, their impact on the effectiveness of the system of non-tax revenues and contribute to its understanding, as it represents an important segment for strengthening the competitiveness of the Croatian economy. The study is based on a systematic analysis of non-tax revenues in Croatia. For the purposes of comparative analysis, the following forms of literature were taken into account: different national strategic documents of the Republic of Croatia, the European Commission reports, available statistical indicators and relevant foreign and domestic scientific and professional literature dealing with the problem of non-tax revenue. The time scope of the analysis is the period from 2008 to 2016 and the results were compared with the data obtained from other sources. Croatia has made limited progress in the area of non-tax revenues as one of the components required for the removal of macroeconomic imbalances in the economy.