The Role and Importance of Taxes in the Formation of State Budget Revenues

Taxation is one of the main tools that shape revenues of state budgets, which fund targeted programs to support sustainable economic growth and ensure fiscal stability. This research aims at studying the significance of taxes in state budget revenue formation and various aspects of tax policy that affect fiscal sustainability and economic growth. It aims to examine the share of tax revenues in state budget forming, the effectiveness of processes related to tax collection and analyze whether the mechanism for tax policy influences public finance sustainability. The research adopts a mixed-method approach that employs both quantitative and qualitative analysis. The results show that taxes are the largest source of government revenue and have material impact on fiscal sustainability. By highlighting the structural importance of tax systems in developing economies the study adds to an emerging theoretical understanding of taxation and public finance.