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Non-tax revenue in the European Union: A source of fiscal risk?

Author

Listed:
  • Gilles Mourre

    (Université libre de Bruxelles (ULB)
    European Commission)

  • Adriana Reut

    (European Commission)

Abstract

Despite its relevance for fiscal policy, non-tax revenue is only defined by exclusion and it is an area that has been scarcely studied for developed economies. This study is an attempt to provide an analysis of this relevant component of government revenue, using comparable national accounts data. It assesses the size, composition and volatility of non-tax revenue in the European Union, and it explores, by means of panel data analysis, whether macroeconomic and fiscal conditions can explain the observed heterogeneity in non-tax revenue across the Member States. We also find that the relative variability of non-tax revenue is around three times higher than that of tax revenue, being a significant source of fiscal risk that is often overlooked.

Suggested Citation

  • Gilles Mourre & Adriana Reut, 2019. "Non-tax revenue in the European Union: A source of fiscal risk?," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 26(1), pages 198-223, February.
    • Handle: RePEc:kap:itaxpf:v:26:y:2019:i:1:d:10.1007_s10797-018-9498-z
    DOI: 10.1007/s10797-018-9498-z
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    References listed on IDEAS

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    1. Morrison, Kevin M., 2009. "Oil, Nontax Revenue, and the Redistributional Foundations of Regime Stability," International Organization, Cambridge University Press, vol. 63(1), pages 107-138, January.
    2. Hickey, Rónán & Smyth, Diarmaid, 2015. "The Financial Crisis in Ireland and Government Revenues," Quarterly Bulletin Articles, Central Bank of Ireland, pages 60-71, October.
    3. Gilles Mourre & Caterina Astarita & Anamaria Maftei, 2016. "Measuring the Uncertainty in Predicting Public Revenue," European Economy - Discussion Papers 039, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    4. Hickey, Rónán & Smyth, Diarmaid, 2015. "Government revenues in Ireland since the financial crisis," Economic Letters 07/EL/15, Central Bank of Ireland.
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    Cited by:

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    2. Zhao, Renjie & Zhang, Jiakai, 2022. "Rent-tax substitution and its impact on firms: Evidence from housing purchase limits policy in China," Regional Science and Urban Economics, Elsevier, vol. 96(C).
    3. Valentin Marian ANTOHI & Monica Laura ZLATI, 2017. "The Impact of the Application of the Fiscal Risk Assessment Procedure in Romania," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 3, pages 78-86.
    4. Volkan Yurdadog & Neslihan Coskun Karadag & Murat Albayrak & Oguzhan Bozatli, 2022. "Analysis of Non-tax Revenue: Evidence from the European Union," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 24(60), pages 485-485, April.
    5. Neha Rajput & G. S. Bhalla, 2024. "Testing the Relationship Between Income and Expenditure of a Statutory Organization: Cointegration and Causality Approach," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 4338-4355, March.
    6. Kateryna Anufriieva & Svitlana Brus & Yevhen Bublyk & Yuliia Shapoval, 2021. "Ukrainian Financial System Development: The Path to EU," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 3, pages 39-55.

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    More about this item

    Keywords

    Fiscal policy risk; Government revenue; European Union;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H27 - Public Economics - - Taxation, Subsidies, and Revenue - - - Other Sources of Revenue

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