<abstract xmlns="http://www.w3.org/1999/xhtml"><p>The relative level of fiscal revenue in relation to the total aggregate domestic product or national income is a central indicator to be established in the national economy. This indicator is the “tax ratio”. The tendency of almost every economic and especially fiscal policy is that this indicator expresses the optimal ratio between the part of the domestic product or national income, which is intended to be used for the settlement of public needs and the general economic aggregate of the latter economic categories. Its special importance lies in the design concept of medium-term or long-term social and economic development. It is necessary to determine the framework of the global distribution of the domestic product or national income, which is acceptable, on the one hand, from the perspective of a balanced and stable economic growth, and on the other hand, from the standpoint of balancing interests of all social structures of modern mixed societies.</p></abstract>

The relative level of fiscal revenue in relation to the total aggregate domestic product or national income is a central indicator to be established in the national economy. This indicator is the “tax ratio”. The tendency of almost every economic and especially fiscal policy is that this indicator expresses the optimal ratio between the part of the domestic product or national income, which is intended to be used for the settlement of public needs and the general economic aggregate of the latter economic categories. Its special importance lies in the design concept of medium-term or long-term social and economic development. It is necessary to determine the framework of the global distribution of the domestic product or national income, which is acceptable, on the one hand, from the perspective of a balanced and stable economic growth, and on the other hand, from the standpoint of balancing interests of all social structures of modern mixed societies.

Theoretical and Methodological Aspects of Optimization of Relationship between Economic Potential and Sources for Public Needs Settlement

University of East Sarajevo, Faculty of Economy Pale, Bosnia and Herzegovina

ECONOMICS

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

The relative level of fiscal revenue in relation to the total aggregate domestic product or national income is a central indicator to be established in the...

Theoretical and Methodological Aspects of Optimization of Relationship between Economic Potential and Sources for Public Needs Settlement

Published Online: Jul 15, 2016

Page range: 59 - 72

DOI: https://doi.org/10.1515/eoik-2015-0029

Keywords
Public finance, Fiscal Load, Tax Racio

© 2016 Aleksandar Stojanović, published by De Gruyter Open

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Theoretical and Methodological Aspects of Optimization of Relationship between Economic Potential and Sources for Public Needs Settlement

Published Online: Jul 15, 2016

Page range: 59 - 72

DOI: https://doi.org/10.1515/eoik-2015-0029

KeywordsPublic finance, Fiscal Load, Tax Racio

© 2016 Aleksandar Stojanović, published by De Gruyter Open

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
Public finance, Fiscal Load, Tax Racio