Economic Archive

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  The Budget Balance – Technical and Financial Aspects

  The paper focuses on issues related to the procedure for determining the different types of budget balance in compliance with the consolidated fiscal programme (CFP) and the national budget, and their economic interpretation. The paper also specifies that the numeric value which states the difference between the value of receipts and the value of ... The paper focuses on issues related to the procedure for determining the different types of budget balance in compliance with the consolidated fiscal programme (CFP) and the national budget, and their economic interpretation. The paper also specifies that the numeric value which states the difference between the value of receipts and the value of outlays depends on the absolute sum of expenditure on interest payments on internal and external loans. The dynamics of the difference between the values of receipts and outlays under the CFP and under the national budget is analysed. We prove that the rate of change in the consolidated cash budget balance does not match the rate of change in the cash balance on the national budget. We also identify the relation between analysed balance variables and the reference values approved by the Maastricht Treaty and set in the Public Finance Act. An analysis is made of the effect which the rate of change in the nominal value of receipts and outlays exercises on the dynamics of analysed cash budget balances. Finally, we arrive at the conclusion that the value and the relative share of the budget balance in the GDP do not pose a threat to public finance stability.

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  Too Big to Fail Doctrine and the Financial Safety Net

  The global financial crisis of 2007-2009 has revealed the negative effects of the TBTF doctrine and the need to take measures to limit government intervention in cases of insolvency of systemically important banks. In the EU, such measures were taken mostly in the supervision of systemically important banks, the capital requirements, the capacity ... The global financial crisis of 2007-2009 has revealed the negative effects of the TBTF doctrine and the need to take measures to limit government intervention in cases of insolvency of systemically important banks. In the EU, such measures were taken mostly in the supervision of systemically important banks, the capital requirements, the capacity of banks to absorb losses by using domestic resources, and deposit gurantee schemes. The study focuses on the development of a financial safety net. Priority is given to deposit guarantee schemes, which are an essential component of the financial safety net. The evolution of deposit guarantee schemes is studied and an analysis of its impact on the TBTF doctrine is made. The survey has shown that the development of deposit insurance has contradictory effects on the TBTF doctrine.

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  Specific Vat Regimes in the EU - Methodical Cases and Solutions

  The differences in tax systems of the member-states of the European Union as well as the specific VAT regimes require passing through varying degrees of approximation, including the complete unification of some of them in order to improve tax collection. Thus the legal framework of the tax system of the EU sets taxes common to every state and ... The differences in tax systems of the member-states of the European Union as well as the specific VAT regimes require passing through varying degrees of approximation, including the complete unification of some of them in order to improve tax collection. Thus the legal framework of the tax system of the EU sets taxes common to every state and those which reflect national specificities and exist only by virtue of tradition or by the peculiarities of the economy of the country. They inherently have unique problems and differ from one another because the parties are free to choose a tax system that is considered to be the most effective for their conditions, provided that the general rules are observed.