Scientific Papers


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ISSN: 2306-3483 (Online), 2071-8330 (Print)

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State budget revenue optimization using the simplex method

Vol. 14, No 2, 2021


Inna Shkolnyk


Sumy State University, 


ORCID 0000-0002-5359-0521

State budget revenue optimization using the simplex method

Serhiy Kozmenko


University of Social Science,

Lodz, Poland; 

University of Customs and Finance,

Dnipro, Ukraine

ORCID 0000-0001-7710-4840

Jana Drahosova


Faculty of Economics and Business,

Pan-European University in Bratislava,


ORCID 0000-0003-0539-9500

Olga Kozmenko


University of Economics and Innovation in Lublin,


Kharkiv National University of Economics,


ORCID 0000-0003-0088-593X

Khaled Aldiwani


University of Customs and Finance,

Dnipro, Ukraine; 

Higher Institute of Science and Technology,






Abstract. State budget revenue generation is the result of the implementation of fiscal policy and the basis for effective government performance. Given that the approaches to generating state budget revenues vary significantly between different countries in terms of the structure of tax revenues and their ratio to non-tax revenues, there is no unified optimal ratio. The article focuses on the study of this issue in Ukraine. Since Ukraine is trying to bring its financial system and, in particular, public finance, as close as possible to the standards and norms of the European Union, it is interesting to model the optimal structure of budget revenues based on the analysis of state revenues in the EU countries. In the article authors suggest the ways to optimizes Ukraine’s state budget revenues using the simplex method, which is based on the use of data on their 2007–2019 structure. The main guideline in determining the limits of their optimal volume is the practice of forming national revenues in 25 EU countries over the same period. An additional justification for determining the optimal structure was the use of regression analysis, the results of which were applied to determine the nature and strength of the functional relationships between the income structure and the integral coefficient of structural changes in GDP.  Half of the items turned out to have a direct impact, while the other half had a reverse impact on the GDP structure by type of economic activity. Comparison of the obtained optimal values of individual income items with their actual values made it possible to substantiate that the share of internal taxes on goods, services, property and business taxes, as well as an increase in rent payments, needs to be revised upward. In the future, this will require a revision of the regulatory framework for specified taxes and the mechanism for their administration.


Received: August, 2020

1st Revision: March, 2021

Accepted: May, 2021


DOI: 10.14254/2071-8330.2021/14-2/16


JEL ClassificationH60, H61, H70, H71

Keywordspublic finance, taxes, fiscal policy, index of structural changes, economic and mathematical modelling