ANALYSIS OF THE STRUCTURE OF TAX REVENUES OF THE BUDGETS OF THE COUNTRIES OF THE EUROPEAN UNION AND UKRAINE

Abstract

The tax system determines the level and structure of budget revenues, which are used to finance public needs and stimulate economic activity. However, the tax system is not static, but changes under the influence of various internal and external factors, such as globalization, integration, technological progress, social demands, etc. The article explores theoretical approaches of Ukrainian and foreign scholars regarding the relationship between a country’s level of economic development and the centralization of part of its GDP through tax instruments, fiscal efficiency of direct and indirect taxation, its impact on economic processes, as well as outlines certain advantages and disadvantages of direct and indirect taxes in terms of implementing state socio-economic priorities. The dynamics of the share of tax revenues for individual EU budgets (Poland, Hungary, Romania) and the state budget of Ukraine in GDP for 2020-2022 are examined. A comparative analysis of the structure of tax revenues for individual EU budgets (Poland, Hungary, Romania) and the state budget of Ukraine is conducted, focusing on direct (income tax) and indirect taxes (goods and services tax). Specific directions for improving direct taxation to gradually enhance its significance are outlined. The research focuses on comparing tax systems, identifying the main sources of state budget income, and analyzing tax administration efficiency. Significant attention is given to the impact of tax policy on the socio-economic development of countries and integration processes within the EU. In the European Union, tax policy results from joint efforts by member states aiming to optimize tax revenues and stimulate economic growth. It was concluded that it is important to determine the ideal balance between direct and indirect taxes, which would ensure the fiscal needs of the government and at the same time guarantee a sufficient balance of financial resources for consumers and businesses in order to meet their consumer and investment needs. The research findings can be utilized to enhance the tax system, improve transparency, and increase effectiveness. Additionally, the analysis provides an opportunity to harmonize tax legislation with European standards, which is crucial for Ukraine’s path toward EU integration.