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Budget and Tax Policy

Course developer

Course abstract

The course extends the knowledge of budget and tax theory and gives an in-depth understanding of budget and tax policies in the Republic of Latvia and in the world and helps to assess, analyse in detail and structure on-going processes in budget and tax policies as well as to forecast the budget and tax policies for specific economic circumstances.

Learning outcomes and their assessment

Students will be able to:
1. Demonstrate an in-depth understanding of the theoretical and historical background of international, national and regional fiscal instruments. Discussion in classes, group work, a test
2. Demonstrate an in-depth understanding of the role of budget and tax policies in the national and the global fiscal arena. Report presentation
3. Independently assess national and local government budgets and the current tax system. Discussion in classes, a test
4. Reasonably explain the budget and tax policies implemented. Reports, presentations
5. Logically and reasonably examine the topics selected and engage in group work. Reports, discussion in classes, group work
6. Plan the time needed for work, participate in discussions and present the research results. Report presentation
7. Independently work on two research topics (budget, taxes), using the acquired knowledge of relevant theoretical and historical aspects. Reports, group work, discussions

8. Integrate the acquired knowledge of tax and budget policies on a national and a global scale, identify relevant problems and regularities and reasonably argue the opinion through actively engaging in discussions. Reports, group work, discussions

Course Content(Calendar)

1. The concept, nature and role of budget in the country. The budget system of the Republic of Latvia, the analysis of the annual state budget, priorities, the general government budget (lectures 5 hours, practical work 4 hours)
2. The nature, roles, characteristics of taxes, their study, stages, fiscal and economic functions, their influence and expression in the state (lectures 5 hours, practical work 2 hours)
3. The dialectic of the tax system of the Republic of Latvia, its structure, state policy, instruments used (lectures 4 hours, practical work 2 hours)
4. Content, nature, mechanisms of tax administration, modern administration models, practice in Latvia and in the world (lectures 4 hours, practical work 2 hours)
5. Seminars and discussions: presentations of presentations - independent research on the evaluation of budget policy, its connection to current and problematic issues in Latvia and the world (Practical work 4 hours)

6. Seminars and discussions: presentations of presentations - independent research on the evaluation of tax policy, its connection to topical issues and problems in Latvia and in the world. (Practical work 4 hours)

Requirements for awarding credit points

1) A test should be written on the topics and problems of the budget policy block
2) A test should be written on the topics and problems of the tax policy block
3) Present the paper and participate in the discussion, choosing from the topics of budget theory and policy block, about current events and experiences in Latvia and the world

4) Present the paper and participate in the discussion, choosing from the topics of tax theory and policy block, about current issues and experience in Lat

Description of the organization and tasks of students’ independent work

Prepare a 7- to 10-page report and presentation on budget policy.
Prepare a 7- to 10-page report and presentation on tax policy.
Use classical theory sources, databases of scientific publications, statistical data, current information in periodicals and internet sources.

Criteria for Evaluating Learning Outcomes

1) Topics on and problems in budget policies (the Maastricht criteria, the role and functions of a budget, a budget period, factors affecting a budget, a budgetary position, methods and funds to cover a budget deficit, two-level budget systems, national and local government budgets, the government consolidated budget, budgetary revenue and expenditure, the classification and kinds thereof, a financial equalisation mechanism). Test – 20%
2) Topics on and problems in tax policies (tax origins, dialectics, systems and research; A.Smith’s postulates, basic principles of taxation, goals, instruments, legal aspects of and trends in tax policy; tax globalisation, harmonization, the classification of taxes, tax elements, the nature and substance of tax administration). Test – 20%
3) All the topics on budget theory and policies, the latest developments and experience in this field in Latvia and the world. Report, a presentation, discussion – 30%
4) All the topics on budget theory and policies, the latest developments and experience in this field in Latvia and the world. Report, a presentation, discussion – 30%

10% are equal to one point on a 10-point marking scale

Compulsory reading

1. Brigsa S. Publiskās finanses. Mācību līdzeklis. Rīga: Valmiera: Vidzemes Augstskola, 2011. 133 lpp.
2. Kavale L, Joppe A. Nodokļu politikas un administrēšanas pamati. Mācību līdzeklis. Rīga: LU Akadēmiskais apgāds, 2008. 80 lpp.
3. Kavale L. Budžets un finanses. Mācību līdzeklis. Rīga: LU Akadēmiskais apgāds, 2008. 44 lpp.
4. Ketners K., Pētersone M. Eiropas politikas nodokļu politika. Mācību līdzeklis. Rīga: RTU izdevniecība, 2014. 207 lpp.
5. Mikesell J. L. Fiscal Administration. Analysis and Applications for the Public Sector. USA: Thomson Higher Education, 2007. 686 p.
6. Sīpola E. Mūsdienu nodokļu teorija. Rīga: RTU, 2001. 160 lpp.

Further reading

1. Gončarovs G. Finanšu teorija. Rīga: Latvijas Universitāte, 2000. 107 lpp.
2. Hite K. A., Seitz J. L. Global Issues. Fifth edition.Wiley Blackwell, 2016. 335 p.
3. Olney M. L. Macroeconomics as a Second Language. Wiley, 2011 334 p.
4. Harvey S. Public Finance. Rosen and Ted Gayer, 2009. 595 p. ISBN 9780073511351,
5. Tanzis V. Budget and Tax Policy for Developing Countries. Washington, 2001. 18 p.
6. Сатклифф М., Доннеллан М. Еффективная финансовая деятельность. Москва: Вершина, 2009. 494 с.
7. Williamson S. D. Macroeconomics. Sixth edition. Pearson: Education Limited, 2018. 727 p.

Periodicals and other sources

1. Latvijas Vēstnesis: Latvijas Republikas oficiālais laikraksts. Rīga: Valsts uzņēmums „Latvijas Vēstnesis”. ISSN 1407-0391 Pieejams: https://www.lv.lv/
2. The Economist. London: Economist Newspaper Ltd. ISSN 0013-0613. Pieejams: http://www.economist.com/?sa_campaign=econsubs/europe/subspage/imglink
3. iFinanses. Rīga: izdevniecība iŽurnāli. ISSN 2255-985X Pieejams: http://ifinanses.lv
4. LR normatīvie akti. Piejams: http://www.likumi.lv

Notes

Restricted elective course for full-time studies of the “Economics” academic master's degree programme for the specialization “Financial Management and Accounting”