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Comparative Analysis of Fiscal Regulation Measures of the G20 Countries in the Era of the Coronavirus Crisis and in the Post-Coronavirus Perspective

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  • A.I. Pogorletskiy
  • N.V. Pokrovskaia

Abstract

The article seeks to describe the features of fiscal policy during the Covid-19 pandemic. The research subject is the developed and developing countries of the G20 Group. The purpose of the article is to show an increasing importance of fiscal regulation measures in the era of the coronavirus crisis and in the post-coronavirus future, while noting the special role of taxation, which in modern conditions is given an important role in the toolkit for replenishing the revenue of state budgets of the leading countries of the world. The hypothesis of the research is that fiscal policy in the modern world acquires a qualitatively different meaning, becoming a priority of state regulation in the field of public finance, shifting the emphasis from the previous priority of monetary policy measures. Based on the generalization of the Covid-19 consequences on the economy and public finances and the experience of overcoming crises, the key postulates of modern fiscal policy were substantiated: clear socially oriented focus; focus on neutralizing excess income of companies that managed to take advantage of their technological advantages during the pandemic; a combination of support for the population by growing government spending and the use of tougher tax pressure on those who managed to get rich during the coronavirus crisis; consistency of the national fiscal policy of the post-Covid recovery period with the policies of other countries of the world. Summarizing the experience of implementing fiscal policy in China, Japan and Korea since the early 2020s made it possible to highlight the differences between countries in the tax response to the pandemic, as well as to the recovery after it: the planned tax cut in China, the issuance of corona bonds in Japan, tax incentives for certain sectors of the economy against the background of an increase of PIT rate in Korea. The study of fiscal policy during the Covid-19 pandemic based on data from national financial statistics is of interest for future research.

Suggested Citation

  • A.I. Pogorletskiy & N.V. Pokrovskaia, 2021. "Comparative Analysis of Fiscal Regulation Measures of the G20 Countries in the Era of the Coronavirus Crisis and in the Post-Coronavirus Perspective," Journal of Applied Economic Research, Graduate School of Economics and Management, Ural Federal University, vol. 20(1), pages 31-61.
  • Handle: RePEc:aiy:jnjaer:v:20:y:2021:i:1:p:31-61
    DOI: http://dx.doi.org/10.15826/vestnik.2021.20.1.002
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    References listed on IDEAS

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    4. Michihito Ando & Chishio Furukawa & Daigo Nakata & Kazuhiko Sumiya, 2020. "Fiscal Responses to the COVID-19 Crisis in Japan: The First Six Months," National Tax Journal, National Tax Association;National Tax Journal, vol. 73(3), pages 901-926, September.
    5. G R Steele, 2020. "Fiscal and monetary interdependence," Economic Affairs, Wiley Blackwell, vol. 40(2), pages 198-208, June.
    6. Alexander I. Pogorletskiy & Fritz Söllner, 2020. "Pandemics and Tax Innovations: What can we Learn from History?," Journal of Tax Reform, Graduate School of Economics and Management, Ural Federal University, vol. 6(3), pages 270-297.
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    More about this item

    Keywords

    public finance; public debt; corona crisis; taxes; tax policy; taxation; Covid-19 pandemic; fiscal policy;
    All these keywords.

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
    • H5 - Public Economics - - National Government Expenditures and Related Policies
    • H6 - Public Economics - - National Budget, Deficit, and Debt

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