| Abstract [eng] |
This Master’s thesis deals with the public finance of the New EU countries and the significance of the (financial) determinants‘ impact in different phases of the economic cycle. The conceptual part of the thesis analyzes the theoretical issues of the dynamics of public finance in the different phases of the business cycle, and the determinants of public finance are closely detailed. Public finance is the state’s revenue and expenditure which are formed according to the principles of taxation and borrowing policies as well as the functions performed by the state. The management of the state finance dynamics is greatly influenced by its fiscal policy. As economics develops in cycles, countries apply different types and quality grades of fiscal policy since the possibilities of their application depend on the country‘s level of development. The major part of state revenue is received from the tax. Most of the tax revenue comes from the three main taxes: VAT (value-added tax), PIT (personal income tax) and excise duties. Collection of these taxes is influenced by various factors, such as the amount of goods and services sales, import, export, the price of goods and services, shadow economy, tariffs, minimum and average wages, unemployment and employment rates. Meanwhile, public spending is determined by the economic and social factors: the size of the economy, state debt, population, tax collection rates, prices and age structure. In the analytical part of the thesis, the New EU countries are grouped in accordance with the phases of the economic cycle. Furthermore, the reasons of the dynamics of different components of public finance are analyzed, and the New EU countries are ranked according to the indebtedness and disbalance size. It is determined that state finance fluctuates equally with the economic cycle phases. Therefore, the constructive part aims to identify the factors influencing the public finance. Four hypotheses are created, and econometric models are made to test the hypotheses. The models establish the relations between the components of public finance (excise duties, personal income tax, value-added tax and costs) and factor subjects, and also determine their impact as well as the significance of the impact on public finance in different phases of the business cycle. Hypotheses H1 and H2 are partially confirmed, i.e. the impact of not all the factors determining the collection of revenue from VAT and PIT is significantly different in all phases of the business cycle. Hypothesis H3 is confirmed, i.e. the impact of revenue from excise is not significantly different in all phases of the business cycle. Hypothesis H4 is discarded, i.e. different factors determine public expenditure groups. It is proposed to expand the scope of research in assessing the factors which determine unproductive state expenditure. |
