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- Title
REVENUE FROM THE PERSONAL INCOME TAX IN MUNICIPAL BUDGETS OF LATVIA AND LATGALE REGION.
- Authors
Zelca, Sandra
- Abstract
Municipal budget is the main element that determines the qualitative implementation of the economic functions of a city. The main source of income for a municipal budget is taxes and the personal income tax in particular. According to the distribution of the personal income tax within the state and municipal budgets, 80% of the personal income tax revenue goes to municipal budgets. The aim of the research is to investigate and analyze the revenue from the personal income tax in Latvia and Latgale region and its influence on municipal budgets. The tasks of the research: 1) to investigate the dynamics of the revenue of the state and municipal budgets in Latvia from 2006 to 2009; 2) to analyze the revenue from the personal income tax in Latvia and Latgale region from 2006 to 2009; its influence on the revenue of municipal budgets; 3) to investigate the factors of influence of the personal income tax revenue. On the whole, we can conclude that from 2006-2008 with the rise of the state consolidated total budget, the income of municipal budgets increases, too; that can be explained by the rise of tax income and non-tax income of the municipal budgets. However, in 2009 the state consolidated total budget income and the revenue of the municipal budgets decreased. The same tendencies can be observed in the revenue from personal income tax in Latvia and Latgale region. This led to the decrease of the personal income tax sums levied to municipal budgets. This also led to the decrease in the proportion of the personal income tax revenue in the basic budget of municipalities from 51-52% in 2006 - 2007 to 40% in 2009. The development of the personal income tax revenue was negatively influenced by the yearly growth of non-taxable minimum and the tax relief for dependents, which started in 2005, as well as by the government policy aimed at economizing and optimization of labour force in the private sector that started in the end of 2008 and continues up to now.
- Subjects
LATGALE (Latvia); LATVIA; MUNICIPAL budgets; REVENUE; INCOME tax; BUDGET; INCOME
- Publication
Regional Review / Reģionālais Ziņojums, 2010, Issue 6, p41
- ISSN
1691-6115
- Publication type
Article