Covering the Impact of Fiscal Policy on Economic Sustainability
Covering the Impact of Fiscal Policy on Economic Sustainability

Summary/Abstract: The main goal of this research is to analyze the impact of expenditures and revenues in a certain periods of the year 2004 to 2013. The research includes data on GDP, public spending and revenues.Using the method of simple linear regression and through the application of the method of small squares (OLS), we will test the effects of income and public expenditures in GDP in the Republic of Macedonia.Regarding the impact of income in GDP of the Republic of Macedonia, the results show that the change of income for 1% will cause GDP growth 0.18%. At this point we have made a t-test which is 1.68 and it’s bigger than 0.05, so we can confirm that the coefficient has powerful indication.So by this result we prove the hypothesis of the paper submitted at the beginning which says H1: public revenues affect negatively in the economic growth in Republic of Macedonia.From the results of the regression, we found that the eventual change of expenses for 1% will dramatically reduce GDP by 0.9%. Since the t-test shows that t = 14:33, is bigger than 0.05, thus I conclude that the test has indicator, since it is greater than 0.05.

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