Fiscal Challenges in Pandemic Times

Gaber, Stevan and Gruevski, Ilija (2021) Fiscal Challenges in Pandemic Times. Journal of economics, 6. pp. 109-118. ISSN 1857-9973

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Abstract

The unexpected health crises that appeared at the end of 2019 and endures currently had triggered serious government challenges in conducting efficient fiscal policy. The growing health, educational, social, and other costs corelated with the health crisis had raised intense reactions in governments through higher public expenditures that were financed dominantly from international financial markets. Already higher public debt to GDP ratio in some countries overcome the Maastricht criteria of this crucial fiscal variable that raised some serious questions for future government financial responses. This pandemic opened
some suggestions and considerations for major or minor tax reforms in some countries.
If previously the governments were repellent to introduce some tax changes, now they see opportunity to easily justify this fiscal step. The people subjected to COVID-19 disease are addressing more publicly the need for substantial government help regarding the health costs. The IMF surveys show that people who faced this illness are more demanding for changes in distributional fiscal function. The companies and households with extra profits and income should be taxed with higher income tax rates and corporate taxes. The reason
for this demand is the ongoing process of unevenly distributed national income that in pandemic circumstances affects more lower layers of income households. However, the
real sector in North Macedonia is publicly against higher tax rates, and they demand from government first to legalize the grey economy that they perceived as serious competitive
and fiscal problem.

Item Type:	Article
Subjects:	Social Sciences > Economics and business
Divisions:	Faculty of Economics
Depositing User:	Stevan Gaber
Date Deposited:	26 Jan 2022 08:20
Last Modified:	26 Jan 2022 08:20
URI:	https://eprints.ugd.edu.mk/id/eprint/29075

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