• Erika Zubule Faculty of Economics and Management, Rezekne Academy of Technologies (LV)
  • Peter Grabusts Faculty of Engineering, Rezekne Academy of Technologies (LV)



budget revenue, corporate income tax, fiscal policy, fiscal risk, gross domestic product


The choice and topicality of the research topic is based on the fact that upon strengthening of the government's regulating role in economy, the notion of public finances positions itself, and state budget has become an important subject of both economic and political discussions as implementation of fiscal policy is takes place through it. In order to evaluate fiscal policy, it is necessary to evaluate the potential influence of different fiscal policy instruments on social and economic situation in the state. Aim of the research – to evaluate activities of fiscal policy implemented in Latvia in context of certain tax, namely, influence of corporate income tax on state's economic and financial indicators, identifying the main risks and imperfections of fiscal policy when ensuring state's budget. Applying simulation methods in the environment of Matlab/Simulink, the authors analyze and evaluate the influence of fiscal decisions and their implementation on the situation in Latvia, analyzing the most important tendencies in the sphere of corporate income tax payments according to the tax reform commenced in 2018.


Download data is not yet available.


Ē.Žubule, P.Grabusts, L.Kavale, “Creation of Innovative Approach for Study of the National Fiscal Space, ” Proceedings of the 11th International Conference “Environment.Technology.Resources”, Rezekne,June,15-17, 2017, Vol.2., P.189-195.

J.M. Keynes, The General Theory of Employment, Interest, and Money. Routledge, Taylor & Francis Group, 2017.

Macroprudential Policy and Practice. In P. Mizen, M. Rubio, & P. Turner (Eds.), Macroprudential Policy and Practice (Macroeconomic Policy Making, p. I). Cambridge: Cambridge University Press, 2018.

J.L. Mikesell, Fiscal Administration: Analysis and Applications for the Public Sector, Belmont, US, 2007.

R. Allen, R. Hemming, and B.H. Potter, The International Handbook of Public Financial Management. Palgrave Macmillan, 2013.

A. Alesina and S. Ardagna, “Large Changes in Fiscal Policy: Taxes Versus Spending. Taxpolicy and the Economy, ” 24(1), 35-68, 2010.

Public Budgeting: Policy, Process and Politics, Rubin.I.S., ASPA, 2008.

C. Kay, Mathematics for Computer Programmers. New Jersey: Prentice Hall, 1984.

J. Kiusalaas, Numerical Methods in Engineering with MATLAB, 3e. Cambridge University Press, 2016, 430 p.

T. Siauw and A. Bayern, An Introduction to MATLAB Programming and Numerical Methods for Engineers. Academic Press, 2014, 340 p.

D. Smith, Engineering Computation with MATLAB, 3e. Pearson Education Inc, 2013, 464 p.

D. Xue and Y. Chen, System Simulation Techniques with MATLAB and Simulink. John Wiley & Sons, Inc, 2013, 488 p.

P. Karel and Z. Tomas, “Multimedia Teaching Aid for Students of Basics of Control Theory in Matlab and Simulink,” Procedia Engineering, Volume 100, 150–158, 2015.

A.B. Shiflet and G.W. Shiflet, Introduction to Computational Science: Modeling and Simulation for the Sciences, 2e. Princeton University Press, 2014, 856 p.

C.W. Silva, Modeling and Control of Engineering Systems. CRC Press, Inc, 2009, 766 p.

“A medium-term draft state budget for 2019 will not be prepared,” Feb. 7, 2019. [Online]. Available: [Accessed: March 10, 2019]. (in Latvian)

“Summary of the implementation of the budget revenue share for the 12 months of 2018,” Jan. 22, 2019. [Online]. Available: [Accessed: March 10, 2019]. (in Latvian)




How to Cite

E. Zubule and P. Grabusts, “ANALYSIS AND EVALUATION OF FISCAL POLICY IN LATVIA”, ETR, vol. 2, pp. 184–188, Jun. 2019, doi: 10.17770/etr2019vol2.4076.