Work

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

Year: 2025

Type: article

Abstract: 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.

Source: Ekonomski pogledi

DOI: 10.5937/ep27-55692

Authors: Gordan Janković, Miloš Golubović

Institution: University of Nis

Language: English

Topic: Economic and Fiscal Studies

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: diamond

Funder: Ministarstvo Prosvete, Nauke i Tehnološkog Razvoja

Awards: G2694529125, G2919793022, G3104528315, G4548104372