THE ROLE OF FORECASTING TAX REVENUES IN STATE FINANCIAL PLANNING

Tax revenue forecasting is a critical component of fiscal planning for governments worldwide, influencing budgetary decisions, economic policies, and public service provision. This study delves into the significance of accurate tax revenue projections in financial planning and governance. By examining various forecasting methodologies, challenges, and implications, the research elucidates the complexities involved in predicting tax revenues amidst dynamic economic landscapes. Drawing on a synthesis of literature, case studies, and empirical evidence, the paper underscores the importance of reliable revenue forecasts for fostering fiscal sustainability and effective policymaking. Ultimately, the findings contribute to enhancing understanding of tax revenue forecasting and its broader implications for public finance management.