The formation of budget revenues in Ukraine is the most important component
of the entire process of managing the budgetary system.
According to the Budget Code, budget revenues are understood as tax, non-tax
and other revenues on a non-refundable basis, the collection of which is provided for
by the legislation of Ukraine (including transfers, fees for the provision of
administrative services, own revenues of budgetary institutions).
The instability of the economic environment leads to the need for a more
detailed and in-depth study of the processes taking place in the framework of budget
revenue management.
The large difference in economic development among countries is associated
with knowledge development. The distribution of factors takes into account two
sectors – research and development (R&D) sector and good-production sector.
We assume that some fraction of labor force as well as some fraction of capital
are used in R&D sector. Rest of them are used in goods production sector.