EFFECTS OF GOVERNMENT BUDGET BALANCE ON ECONOMIC GROWTH

Authors

Keywords
Public revenues, budget balance, budget deficit, budget surplus, economic growth.

Summary
The necessity of adequate use of public budget as a fiscal instrument for economic regulation is even more tangible in conditions of slow economic growth rate. The debate on whether the public budget can maintain a balance between economic stability and social equity has a long history. Another question is whether budget deficit or budget surplus would trigger higher economic growth.

The main objective of the empiric analysis is to evaluate the budget deficit/ surplus impact on real economic growth rate by using econometric analysis and comparative analysis between Bulgaria and the other Member States of the European Union as well as the Balkan States (Cyprus, The Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, Slovenia, Romania, Croatia, Greece, Serbia, Turkey and North Macedonia).

The specific task is to justify the need to balance the public budget and reduce the budget deficit in order to achieve sustainable real economic growth.

The thesis of the research is that balancing public budget and reducing distributive and redistributive government activities contribute to higher real economic growth rate in the analyzed Bulgarian and European economies.

The main results of the research prove that reduction of budget deficit and balanced government budget have a positive effect on realized economic growth rate in the analyzed European countries over the period 2007 – 2018.

JEL: H50, H54, H56.
Pages: 26
Price: 3 Points

More titles

  • CHARACTERISTICS OF FRAUD AND PERPETRATORS OF FRAUD

    The development of economic processes and activities raises the need for adequate knowledge and skills related to fraud detection. The relevance of the study is related to the continuous change and development of the means and approaches used by the control bodies, the emerging phenomena and processes requiring innovative thinking and the ...

  • AGILE PROJECT MANAGEMENT IN PUBLIC SECTOR ORGANIZATIONS

    One of the latest approaches to improve the operations of business organizations is the Agile Project Management. It emerged in the software industry in 2001, but gradually entered other, non-software industries. However, the transfer of the approach to the public sector requires a specific transformation of the Agile methodology, insofar as the ...

  • TRAINING IN THE DOCTORAL PROGRAM "ACCOUNTING, CONTROL AND ANALYSIS OF BUSINESS (ACCOUNTING)" AT D. A. TSENOV ACADEMY OF ECONOMICS – PROBLEMS AND PROSPECTS

    Achieving an economic and social standard of society is related to the need for highly qualified scientists and specialists. Policies and activities in the field of education and science are a guarantee for such achievement. Higher schools face the problem of developing and continuously improving doctoral education, incl. education in the field of ...