Assessments of the Effectiveness of the Croatian Fiscal Equalisation Model

No detailed analysis of the fiscal and economic inequalities of local units (at the municipality and city level) in Croatia has ever been published. The Government and the Finance Ministry have endeavoured by tax sharing, allocations of current grants and personal income tax refunds to palliate the differences in the fiscal capacities of local units. However, at the same time the fiscal capacities have not been properly calculated, because during the definition of the criteria for horizontal fiscal equalisation no care has been paid to the economic inequalities nor has there been proper establishment of the way local units belong to a special financing system. The paper, then, tests out the hypothesis that the existing Croatian model of horizontal fiscal equalisation is ineffective, for the Government and the Finance Ministry do not, with their poorly targeted financial instruments (personal income tax sharing, current grants and personal income tax refunds), manage to bring about palliation of the differences among the fiscal capacities of the local units, on the contrary, they tend to increase them.fiscal equalisation, tax sharing, personal income tax, personal income, tax refund, fiscal capacity, Croatia

PENTINGNYA PENGETAHUAN PAJAK DAN SOSIALISASI PAJAK KEPADA CALON WAJIB PAJAK MASA DEPAN

Taxation is the most important state revenue. This can be seen in the posture of the 2020 and 2021 RAPBN (Drafted State Revenue and Expenditure Budget), where in the 2020 State Budget the state revenue is 2,233.2 trillion and 1,865.7, which is equivalent to 83.53%, which is the target of domestic revenue which is comes from taxation sector revenues. Only 16.47% of the targeted state revenue comes from non-tax revenues. Therefore, the importance of taxation is introduced and socialized early on by the taxation authority in Indonesia, namely The Directorate General of Taxes, Finance Ministry of the Republic Of Indonesia (DGT, Ministry Of  Finance, RI). This is mandatory because there are still many general public as taxpayers who still do not have awareness of the importance of this taxation. From the data in the 2019 Annual Report of the DGT of the Ministry Of Finance of the Republic of Indonesia, It can be seen that the ratio of  of taxpayer compliance in Indonesia to compliance in the submission of tax returns (SPT ) Annual Tax in 2019 for Individual Taxpayers (WPOP) the compliance ratio of both employees and non-employees is 73.23% and 75.93%, this figure is still far from the maximum compliance level of Individual Taxpayers to be achieved by Government. Therefore, real action is needed from the Directorate General of Taxes, Finance Ministry of The Republic Of Indonesia (DGT, Finance Ministry of The Republic Of Indonesia) to carry out tax counseling activities in collaboration with the academic community Which Is included in the strategic planning of the  DGT of Finance Ministry of The Republic Of Indonesia in 2019, namely theme Of increasing tax knowledge and  skills where the target is future taxpayers are students who are in high school (SMU). This activity has been carried out by the DGT of Finance Ministry of Republic Of Indonesia in collaboration with several educational institutions, both schools and universities, of which in 2019 there were 1,092 prospective taxpayers (Class X-XII SMA). Therefore, Bunda Mulia University as one of the higher education institutions that has a Tax Center and cooperates and is under Guidance of tthe DGT of Finance Ministry of Republic Of Indonesia, in this case the North Jakarta Regional Tax Office, participates in supporting outreach activities carried out by the  DGT of Finance Ministry of Republic Of Indonesia by conducting Community Service activities. . This PKM activity was carried out for class XI students at SMK Budi Asih and class XII students at SMK Dharmasava with online through the media google meeting (G-meet) on February 15, 2021, considering that the current COVID-19 pandemic condition in Indonesia and the world makes PKM activities impossible. done face to face. Furthermore, as many as 53 PKM participants who were individuals who attended SMK Budi Asih, participated in this PKM activity. As for after the PKM activity was held, the authors hope that all individuals who attend SMK Budi Asih can better understand the importance of tax knowledge and tax socialization to ensure that these students, who are prospective future taxpayers, can become obedient taxpayers, so that revenue from the taxation sector which is the main state revenue can be met with the target of state revenue

Equity Markets with Controlling Shareholders

In early 2008 the Finance Ministry issued a consultation paper on “Requirement of Public Holding for Listing”. The Finance Minister also declared in his 2009-10 budget speech that the threshold for non-promoter public shareholding for all listed companies would be raised in a phased manner. This paper discusses the cross-country research on concentrated share ownership and household participation in equity markets. The paper argues that instead of ‘forcing’ controlling shareholders to dilute their positions the government can achieve its objective more effectively by enhancing minority investor protection in the short run and creating more owners by improving the “Ease of doing business” in the long run.

Do Economic Policymakers Practice what they Preach? The Case of Pension Decisions

This paper examines whether policymakers, economists at the Israeli Finance Ministry, act in their personal pension decisions in accordance with the rational behaviour assumptions underlying the pension policies they advance. We find that while economists' decisions regarding three other important decisions such as buying an apartment, a car and a large appliance, are largely in line with rational models, pension decisions deviate significantly from these models. A large share of these policymakers hardly search for relevant information regarding their chosen pension fund, do not know the most necessary information and consider only one option before choosing the preferred pension fund. A significant difference was found between specialized policymakers (economists in the Pension Division) and general policymakers (economists in all other Divisions) showing that specialized policymakers are significantly less biased.policymaking, pension decisions, expert, rational choice

Autoregressive models for analysis of foreign investment in Romania

On the base of significant fluctuations of the international financial markets, the international investment position of Romania has an increasing importance in assuring the financial stability. The Romanian National Bank reserves are increasing as a result of exchanging the minimum reserves into foreign currencies made by banks and of the privatization revenues. The international reserve has been negatively influenced by the payments made in the foreign debt service account and by the foreign payment forms redeemed by the Public Finance Ministry. This paper offers to analyze the evolution and impact of the foreign investments in any form whatsoever, on the Romanian economy with the help of autoregressive econometrical models. These models shall refer to all foreign investments elements: direct investments of non-residents, portfolio investment and other categories of foreign investments as well as bank deposits or external short-term, medium and long-term credits.econometric analysis, foreign investment, autoregressive models

Enhancing the Capability of Central Finance Agencies

A well-organized and effective finance ministry and its associated central finance agencies (CFAs) are essential to good fiscal outcomes. Recent studies of CFAs in selected low-income countries demonstrate that their organizational structure varies widely and that decision making on public finance is strongly influenced by political economy factors. This note presents some common themes arising from the case studies and provides some descriptive evidence about the organizational structure of the CFAs. This note also includes evidence of a “U-curve” pattern in the development of the organizational structure of CFAs over the long term. It confirms that political economy analysis, though difficult to apply in practice, is highly relevant in the development of reform strategies for strengthening CFAs and public financial management systems.finance ministry, central finance agencies, fiscal, public finance, political economy, low-income countries, development, reform, public financial management, World Bank

National Bank of Romania Management in Time of Financial Crisis

According to the objectives pursued in preparing Romania's accession to the European Union (E.U), the National Bank of Romania (N.B.R.) acted in line with Romania's constant efforts aiming to adapt - institutionally, structurally and operationally - the Romanian economy to the E.U. requirements. The E.U. requirements on financial crisis management ask for an agreement of co-operation between all national financial supervisors, central bank and finance ministry. The current financial and economic crisis started at the end of 2008 and appears to be unprecedented in the last century. For 2009, N.B.R. tried to stay consequent in its economic growth projection bringing the following arguments: • lower ratio of exports to Gross Domestic Product (G.D.P.); • lower level of financial intermediation; • the fact that Romania has a nearly balanced energy balance; • exchange rate flexibility; • large volume of structural funds which may be attracted to Romania.management, finance, bank sector, economic crisis.