CORPORATE INCOME TAX AS AN INSTRUMENT OF FISCAL POLICY: IMPACT ON BUDGET DEFICIT IN THE WESTERN BALKANS COUNTRIES

Abstract

This paper analyzes the role corporate income tax as an instrument of fiscal policy and its impact on the budget deficit in the Western Balkans countries. The theoretical framework examines the basic concepts of budget deficit and corporate income tax, while the empirical analysis, based on available data, explores the correlation between fiscal revenues from corporate taxation and the level of deficit in the observed countries. The research highlights the complexity of the interdependence between these fiscal categories and the importance of the institutional and economic context in which tax policy is implemented.