POSITIVE CONTRIBUTION OF REDUCING THE HIDDEN ECONOMY TO BUDGET REVENUES

Аннотация

the underground economy, often manifested in unreported income and unofficial activity, poses significant challenges to national budgets and economic stability. In the past several years, there has been a heightened awareness of the desire to reduce the underground economy, leading to enhanced budget revenues. This paper discusses the advantages of decreasing the hidden economy for the government treasury, explaining the potential for increased tax revenues, improved public services, and greater economic transparency. The paper outlines many techniques that can be employed to move informal activities into the formal economy and reflects on the socio- economic benefits resulting from such a shift. Lastly, reduction of the hidden economy is posed as a precondition for long-term sustainable economic growth and social equity. Keywords: hidden economy, budget revenues, informal sector, tax compliance, economic transparency, public services, socio-economic development.