Inclusiveness of Income Policy and Economic Growth: Assessing Optimal Tax Burden and Revenue Equilibrium – A Case Study of the Republic of Armenia

Effective fiscal policy and its instruments play a crucial role in promoting economic growth and achieving social justice. The application of specific fiscal tools enables simultaneous support for economic stability while reducing income inequality among citizens. The implementation of a flexible tax policy generates possibilities for enhancing social justice while contributing to the primary goal of expanding inclusive income policies. The government receives revenues that serve as a financial guarantee which enables it to meet its obligations and perform its responsibilities while providing essential public services to citizens. Inducing economic expansion through the channel of state spending also aims at assisting in bringing the employment rate of the citizens up and increasing the proportion of middle-income individuals. In this case, the issue of the proper control of budget spending is a crucial aspect, since only the exact distribution of finance will allow reducing the budget deficit and introducing the measures that will assist in the development of the public sectors to ensure the improvement of living standards of broad strata of the population.