Reprecusions of the introduction and change of the value added tax rate on the dynamics of the budget deficit

This paper analyzes the impact of value added tax (VAT) on the volume of the budget deficit. As part of the research, we focus on the mechanisms through which the value-added tax affects state, i.e. public revenues, consumption and economic activity. Through a quantitative analysis of available data...

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Main Authors: Janković Gordan, Golubović Miloš
Format: Article
Language:English
Published: University of Pristina in Kosovska Mitrovica, Faculty of Economics 2025-01-01
Series:Ekonomski Pogledi
Subjects:
Online Access:https://scindeks-clanci.ceon.rs/data/pdf/1450-7951/2025/1450-79512501043J.pdf
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author Janković Gordan
Golubović Miloš
author_facet Janković Gordan
Golubović Miloš
author_sort Janković Gordan
collection DOAJ
description This paper analyzes the impact of value added tax (VAT) on the volume of the budget deficit. As part of the research, we focus on the mechanisms through which the value-added tax affects state, i.e. public revenues, consumption and economic activity. Through a quantitative analysis of available data and a review of relevant theoretical frameworks, we determine how changes in the value added tax rate can affect the budget deficit, especially in the context of fiscal stability. The results show that a properly set value added tax can contribute to reducing the budget deficit, while inadequate fiscal policies can lead to an increase in the deficit.
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institution Kabale University
issn 1450-7951
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language English
publishDate 2025-01-01
publisher University of Pristina in Kosovska Mitrovica, Faculty of Economics
record_format Article
series Ekonomski Pogledi
spelling doaj-art-a0d477263b94450ea56840539aafac8f2025-08-20T03:29:43ZengUniversity of Pristina in Kosovska Mitrovica, Faculty of EconomicsEkonomski Pogledi1450-79512334-75702025-01-01271436410.5937/ep27-556921450-79512501043JReprecusions of the introduction and change of the value added tax rate on the dynamics of the budget deficitJanković Gordan0https://orcid.org/0000-0003-3172-6990Golubović Miloš1https://orcid.org/0000-0001-7783-719XInovacioni centar Univerziteta u Nišu, Niš, SerbiaInovacioni centar Univerziteta u Nišu, Niš, SerbiaThis paper analyzes the impact of value added tax (VAT) on the volume of the budget deficit. As part of the research, we focus on the mechanisms through which the value-added tax affects state, i.e. public revenues, consumption and economic activity. Through a quantitative analysis of available data and a review of relevant theoretical frameworks, we determine how changes in the value added tax rate can affect the budget deficit, especially in the context of fiscal stability. The results show that a properly set value added tax can contribute to reducing the budget deficit, while inadequate fiscal policies can lead to an increase in the deficit.https://scindeks-clanci.ceon.rs/data/pdf/1450-7951/2025/1450-79512501043J.pdfpublic revenuesfiscal policybudget deficitindirect taxesvat
spellingShingle Janković Gordan
Golubović Miloš
Reprecusions of the introduction and change of the value added tax rate on the dynamics of the budget deficit
Ekonomski Pogledi
public revenues
fiscal policy
budget deficit
indirect taxes
vat
title Reprecusions of the introduction and change of the value added tax rate on the dynamics of the budget deficit
title_full Reprecusions of the introduction and change of the value added tax rate on the dynamics of the budget deficit
title_fullStr Reprecusions of the introduction and change of the value added tax rate on the dynamics of the budget deficit
title_full_unstemmed Reprecusions of the introduction and change of the value added tax rate on the dynamics of the budget deficit
title_short Reprecusions of the introduction and change of the value added tax rate on the dynamics of the budget deficit
title_sort reprecusions of the introduction and change of the value added tax rate on the dynamics of the budget deficit
topic public revenues
fiscal policy
budget deficit
indirect taxes
vat
url https://scindeks-clanci.ceon.rs/data/pdf/1450-7951/2025/1450-79512501043J.pdf
work_keys_str_mv AT jankovicgordan reprecusionsoftheintroductionandchangeofthevalueaddedtaxrateonthedynamicsofthebudgetdeficit
AT golubovicmilos reprecusionsoftheintroductionandchangeofthevalueaddedtaxrateonthedynamicsofthebudgetdeficit