Efficiency of public revenues and public expenditures in promoting economic growth in the Republic of Croatia and CEE countries

Members of the project team:
Prof. Helena Blažić - EFRI
Prof. Saša Drezgić - EFRI
Prof. Bojana Olgić Draženović - EFRI
Denis Buterin – PhD student EFRI
Robert Matić – PhD student EFRI

Abstract:
EN: In the last centuries there is growing interest for fiscal policy and its influence on the economic activity. One of the main reasons for that increased interest are the rising public debts/GDP ratios. This is caused by a lot of countries not succeeding in performing sound fiscal policy. This is a policy that stabilizes public finance in the middle and long run. The governments use also actively the mechanisms of fiscal policy such as taxes and public expenditures providing appropriate public goods and services in order to contribute to the economic growth. However, by providing public goods and services the governments could boost economic growth on the one hand, but, on the other, increase tax burden, due to the inefficient provision of public goods, which deteriorate distribution and leads to the slowdown in economic growth. The aim of this project is to investigate fiscal policy and give precise proposals for running sound fiscal policy that leads to the increase in macroeconomic stability and long run fiscal stability, as well as investors confidence and boost economic growth.


Key words: public revenues, public expenditures, efficiency, economic growth, Republic of Croatia, Central and Eastern Europe