This paper explores how state fiscal institutions and political circumstances affect the dynamics of state taxes and spending during periods of fiscal stress. The analysis focuses on the late 1980s, when sharp economic downturns in several regions, coupled with increased expenditure demands, led...

This paper offers a possible explanation for the existence of continual government budget deficits such as experienced in a number of industrialized countries in recent years. Based on the assumption that higher tax rates cause more intensive tax-aversion behavior (tax avoidance and tax...

This paper has mathematically analysed the domestic fiscal deficit and debt. It has been found that unless necessary measures are taken the primary budget deficit in absolute terms is likely to increase annually at about 18 percent. To meet the resource gap requirements given rise by such an...