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The Informal Sector’s Impact On The Budget Revenues

Author

Listed:
  • Vanya Encheva

    (Varna University of Economics)

Abstract

The shadow economy reduces budget revenues, which - against the background of the crisis deficit - additionally harms the fiscal equilibrium. In addition - also against the background of the crisis - the shadow economy increases the costs of the honest business entities, forcing them to compensate for the actions of the dishonest ones. On that basis it is necessary to conduct regular analysis of its effect - both on the public sector, and on business. In view of the limited volume of the present article, the latter will focus on the analysis of the shadow economy phenomenon and the effect on the revenue portion of the budget.

Suggested Citation

  • Vanya Encheva, 2015. "The Informal Sector’s Impact On The Budget Revenues," Business & Management Compass, University of Economics Varna, issue 4, pages 44-55.
    • Handle: RePEc:vrn:journl:y:2015:i:4:p:44-55
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    More about this item

    Keywords

    shadow economy; state budget; budget revenue; GDP;
    All these keywords.

    JEL classification:

    • E69 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Other

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