ISSUES OF OPTIMAL TAX BURDEN AND ECONOMIC GROWTH IN THE REPUBLIC OF UZBEKISTAN
DOI:
https://doi.org/10.47390/SP1342V3I12.1Y2023N36Keywords:
Tax burden, optimal tax theory, economic growth, tax burden targeting, state size.Abstract
The role of taxes in the national economy, the state financial situation and one of the main indicators of budget revenue management is the tax burden. With the help of the tax burden indicator, it is possible to get a preliminary idea of the government's involvement in the economy and the size of the state as a whole. According to official data, the tax burden (ratio of the consolidated budget to GDP) in the Republic of Uzbekistan in 2022 was 29 percent, and the ratio of state budget revenues to GDP (tax burden without targeted funds) was 21.7 percent. According to the results of calculations, the optimal (growth-maximizing) level of the tax burden in Uzbekistan is 20%-22%, and the optimal level of the tax burden without targeted funds is 18%-20%. Targeting the tax burden at this level increases annual economic growth by an average of 0.5%.
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