МЕЖДУНАРОДНАЯ КОНФЕРЕНЦИЯ
АКАДЕМИЧЕСКИХ НАУК
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IMPROVING THE ACCOUNTING OF COMMODITY-MATERIAL
RESERVES IN COMMERCIAL BANKS
Muxsinov Azizbek Shavkatovich
Master’s student at Graduate School of Business and Entrepreneurship
Kilicheva Farida Beshimovna
Doctor of philosophy in Economics
Departament of finance and credit at Renaissance university of education
https://doi.org/10.5281/zenodo.14731425
Privatization plays a vital role in fostering economic growth and improving
fiscal stability in emerging economies. By transferring state-owned enterprises
(SOEs) to private ownership, governments aim to increase efficiency, attract
investment, and expand the tax base. This article examines how privatization
impacts tax revenue generation, highlighting its opportunities and challenges.
Positive Effects on Tax Revenue
Privatized enterprises often achieve higher efficiency, leading to increased
profitability and higher corporate tax contributions. Privatization broadens the
tax base by stimulating economic activities, creating jobs, and attracting foreign
direct investment (FDI). Greater transparency and compliance among private
entities further enhance tax collection efficiency.
Challenges in Tax Revenue Generation
Despite its benefits, privatization can result in the loss of direct revenues
from profitable SOEs, with tax revenues taking time to offset this loss. Issues like
undervaluation of assets, tax avoidance, and weak regulatory frameworks can
limit the fiscal benefits. Additionally, privatization in strategic sectors can lead to
monopolistic practices without proper oversight.
Global Examples
Countries like India, Brazil, and South Africa have seen privatization boost
tax revenues and attract FDI, though challenges like inequality and regulatory
gaps remain. Russia’s rapid privatization highlights the risks of asset
undervaluation and wealth concentration.
Strategies for Maximizing Tax Revenue
Governments should ensure transparency in privatization processes,
develop robust regulatory frameworks, and reinvest proceeds into
infrastructure and public services. Encouraging compliance and preventing
monopolistic practices are key to sustaining fiscal benefits.
Conclusion
МЕЖДУНАРОДНАЯ КОНФЕРЕНЦИЯ
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Privatization has the potential to significantly enhance tax revenue generation in
emerging economies. However, its success depends on transparency, regulatory
oversight, and strategic reinvestment of proceeds. With proper planning,
privatization can strengthen fiscal sustainability and promote long-term
economic growth.
List of literature:
1.
Megginson, W. L., & Netter, J. M. (2001). “From State to Market: A Survey of
Empirical Studies on Privatization.”Journal of Economic Literature, 39(2), 321–
389.
2.
Boubakri, N., & Cosset, J.-C. (1998).“The Financial and Operating
Performance of Newly Privatized Firms: Evidence from Developing Countries.”
The Journal of Finance, 53(3), 1081–1110.
3.
Shleifer, A., & Vishny, R. W. (1994).“Politicians and Firms.” The Quarterly
Journal of Economics, 109(4), 995–1025.
4.
D’Souza, J., & Megginson, W. L. (1999). “The Financial and Operating
Performance of Privatized Firms During the 1990s.” The Journal of Finance,
54(4), 1397–1438.
