The Effectiveness Of Motor Vehicle Tax Collection On Increasing West Java Regional Original Income

The implementation of tax autonomy by the central and regional governments separately provides the flexibility to be more independent in tax arrangements in order to increase the income of each region. The objective of this research is to determine whether the West Java provincial government's application of vehicle tax collection is effective in increasing Regional Original Income (ROI) in West Java. The methodology used in this research is qualitative. Analysis of the data used is analysis by calculating the effectiveness of tax collection. The results of data analysis show that the efficiency of vehicle tax collection has an impact on increasing local revenue in West Java.

ORGANIZATIONAL AND LEGAL DETERMINANTS OF FISCAL POLICY AT THE STATE AND LOCAL LEVELS

The article focuses on the need to study the current state of theoretical and organizational support of fiscal policy. Factors influencing the effectiveness of fiscal policy at the state and local levels are outlined. It is established that the imperfection of fiscal policy creates barriers to the activation of investment and innovation activities in local communities and the state. The normative and legal aspects of harmonization of fiscal policy in the European Union are considered. There are two areas of unification of local taxes and fees in Ukraine: the implementation of the principles of good governance in the field of taxation, the harmonization of the structure of the tax system based on the concepts of direct and indirect taxation. In the article emphasis is placed on the priority of fiscal federalism or decentralization in Ukrainian realities. The essential determinants of the fiscal policy of the state and the region have been identified. The key objectives of regional fiscal policy should be to guarantee financial independence and ensure the ability of the administrative unit's economy to develop itself. The tax potential of local budgets in Ukraine is analyzed. As a result, a low level of budgetary and tax autonomy of territorial communities has been established. In this regard, it is important to focus efforts on combating the spread and minimizing the effects of coronavirus disease (COVID-19) for individuals of fiscal policy. The need to increase the financial capacity of the amalgamated territorial communities has been identified. Guidelines for improving the organizational and legal support of fiscal policy in terms of intensification of Ukraine's European integration aspirations are proposed. It is argued that fiscal policy in Ukraine should be a catalyst for the development of priority sectors of the economy, innovation processes, investment activities in the regions, energy saving and environmentally friendly technologies, educational and scientific processes, digitalization of management at the state and local levels in the administration of taxes, fees, payments.

Fuzzy Stochastic Automation Model for Decision Support in the Process Inter-Budgetary Regulation

The purpose of this article is to study the theoretical foundations of the concept of fiscal decentralization, as the main path of self-development of the national economy of any country, and to develop mathematical tools that support decision-making in the aspect of “hard” budget constraints. The study of the problems of fiscal policy formation in foreign countries presented in modern scientific literature has revealed that the degree of application of the concepts of “soft” and “hard” budget restrictions is an actual topic in the theory of fiscal federalism. It has been substantiated that decision-making within the framework of “soft” budget constraints (financial assistance) leads to low tax autonomy of territories and limited liability of regional and municipal authorities for the results of their financial policy. As a research hypothesis, we put forward the thesis that it is necessary to create conditions for encouraging subnational authorities to support the territorial economy by granting them the possibility to use part of the taxes collected in the respective territories. The implementation of this thesis has given rise to the problem of quantifying decisions made regarding the establishment of standards for the distribution of tax revenues between budgets of different levels of the hierarchy of the country’s budget system. In terms of solving this problem, the author has constructed mathematical models based on the use of synthesis of mathematical apparatus of the theory of stochastic automata, fuzzy algebra, and simulation. In terms of solving this problem, the author proposed the use of mathematical modeling methods. The article presents the results of constructing economic and mathematical models to support decision-making in the vertical distribution of tax revenues between budgets. The models include stochastic automata, as mathematical abstractions, describing the expedient behavior of an economic agent when choosing management alternatives for territories of different levels of economic development. The transition functions of automaton models are formally described on the basis of the synthesis of mathematical apparatus of the theories of stochastic automata operating in random environments and fuzzy sets. The expediency property of the behavior of automaton models is justified by proving the corresponding theorems. The random environment in which stochastic automata are immersed is formed by a simulation model. The article demonstrates the results of experiments carried out on models, as well as a conceptual scheme of interaction between the automaton and simulation models.

The Impact of Fiscal Decentralization on Economic Growth in Central and Eastern Europe

In this research, we evaluated the impact of fiscal decentralization on GDP per capita growth. Using the unbalanced panel data, the authors assessed the interconnections between fiscal decentralization – considering its expenditure and revenue aspects as well as tax autonomy – and economic growth for Central and Eastern European countries from 1995 to 2018. In the examined states, the expenditure decentralization exceeded the revenue one. We found out that revenue decentralization and tax autonomy adversely affected economic growth. But expenditure decentralization associated with a positive GDP growth rate. In this paper, we also explored the peculiarities of fiscal decentralization reform. Structural transformations radically reduced the size of the public sector in Central and Eastern Europe, which had a positive effect on the economy. The vital components of local budgets tax revenues are personal income tax and the property taxes. The most effective mechanism for the property tax base’s determination arises from the value of the real estate or land. Keywords: fiscal policy, fiscal decentralization, tax autonomy, property taxes, economic growth

Regional Tax Autonomy and Budget Balances

The purpose of this study is to test the proposition that better regional fiscal balances are associated with stronger regional tax autonomy as measured by the ratio of property taxes to expenditures. The study uses panel data for 82 subjects of the Russian Federation over 14 years (2005–2018). A two-step dynamic model of budget balance is estimated by the “system” generalized method of moments. A positive and statistically significant association between fiscal balances and tax autonomy is established. This study emphasizes the importance of regional tax autonomy for the development of market-preserving fiscal federalism in Russia.

The CCCTB initiative as a possible solution to the conflict between the internal market and national tax autonomy

In 2016, the European Commission re-launched the project for a common consolidated corporate tax base with a two-step approach of two interconnected proposals of Common Corporate Tax Base (CCTB) and Common Consolidated Corporate Tax Base (CCCTB). The proposals faced fierce opposition from several Member States, even if few oppose combatting tax avoidance and eliminating tax obstacles of cross-border trade in principle. This article examines the CCCTB proposal as a possible solution to the conflict between the internal market and national tax autonomy. When focusing strictly on the said proposals in their current form, analysis of their capabilities to solve the conflict seem dim. On the other hand, if the CC(C)TB is seen as a system of formula apportionment and as an evolving framework, which can be enacted in parts of the internal market through for example enhanced cooperation, the outcast looks more positive.

Twenty Years of the European Charter of Local Self-Government in Slovenia

In the approximately two and a half decades since 1990, Slovenia has undergone a series of unprecedented historical events and has often been characterised as a success story. In the field of local self-government, major legal changes occurred several years before the ratification of the ECLSG. Nevertheless, these changes were already in line with this document. The paper focuses on the assessment of the development of Slovenian local self-government in the light of ECLSG’s provisions on subsidiarity and financial autonomy. As to the first, it may be concluded that, according to internationally established quantitative indicators of decentralisation, Slovenia belongs to the group of centralised states. The share of local (subnational) expenditure as a share of total public expenditure is at around 20%, while the share of local (subnational) expenditure as a share of GDP accounts for approximately 10%. General government employment as a percentage of total employment is at around 17%, of which only 24% are local employees. As to the second, the Slovenian Constitution goes beyond the requirements of the ECLSG on financial resources; however, the legislative implementation of these provisions has always been problematic. In general, the autonomy of municipalities on the expenditure side is much better than on the revenue side. Given the situation of public finances in Slovenia and global development trends, with the increasing complexity of local governance, major shifts in the municipal finance model cannot be expected, especially not in the direction of providing significantly higher financial autonomy or a significantly higher volume of own tax resources. However, it is important to upgrade the system towards the redistribution of existing tax resources between the state and local units by strengthening the elements of the tax autonomy of municipalities. Based on all of the above, it may be concluded that Slovenia is having difficulty with the implementation of both the principle of subsidiarity and principle of financial autonomy. A look behind the curtain therefore relativises the “success story” label.