The Causal Relation between Revenue and Expenditure of Bangladesh

2021 ◽  
Vol 1 (1) ◽  
Author(s):  
Jafrul Shahriar ◽  
Keyword(s):  
Government Spending ◽  
Causal Relation ◽  
Var Model ◽  
Government Revenue ◽  
Total Expenditure ◽  
Budget Deficits ◽  
Total Revenue ◽  
Vector Autoregressive ◽  
The Government ◽  
Causality Model

Bangladesh is a developing country that has been experiencing budget deficits since its independence in 1971. It means the government spending has been exceeding the government revenue. This phenomenon calls for a study of government spending or expenditure and government revenue. This study tries to establish a causal relation between expenditure and revenue of governments of Bangladesh. To accomplish this, this study uses the Vector Autoregressive (VAR) model and the Granger Causality model on the data for the financial year from 1993-1994 to 2017-2018. The study reveals that in the context of Bangladesh, total revenue affects total expenditure, whereas total expenditure does not affect total revenue.

scholarly journals Role of Value Added Tax in Total Tax Revenue: An Empirical Study of Nepal

2020 ◽  
Vol 1 (1) ◽  
pp. 1-12
Author(s):  
Ananta Raj Dahal
Keyword(s):  
Value Added ◽  
Secondary Data ◽  
Tax Revenue ◽  
Government Revenue ◽  
Total Revenue ◽  
Value Added Tax ◽  
Government Organizations ◽  
The World ◽  
The Government

This paper examines the role of Value Added Tax (VAT) in total tax of Nepal. Tax is the main sources of government revenue. There are different kinds of tax systems used in the world. The concept of VAT had been introduced in 1919 A D from Germany as a new concept of indirect tax system of the world. VAT system have introduced from 1995 A D in Nepal. The specific objectives are to analyse the trend of VAT and to examine the correlation between VAT with total revenue and total tax revenue in Nepal. This study is based on secondary data, which are incorporated from the Ministry of Finance and other related government as well as non-government organizations. Both analytical and descriptive statistics are applied as methods in this study. At the process of data analysis some statistical tools like regression, correlation, etc. are used. The study shows that VAT has significant percentage in total revenue and total tax revenue in Nepal. There are more than 99 present variations due to VAT in total revenue, total tax revenue and indirect tax revenue. All these relationship are significant as r >6 PEr everywhere. Thus, VAT has significant contribution in government revenue of Nepal. But the system of VAT must be improved to increase its effectiveness through the government policy level and increase awareness tax payers about baling system of VAT.

Public Spending and Budget Cycles in the Italian Regions: an Empirical Analysis

2010 ◽  
Vol 28 (2) ◽  
pp. 167-177
Author(s):  
Emma Galli ◽  
Marianicola Villani
Keyword(s):  
Local Government ◽  
Social Services ◽  
Empirical Analysis ◽  
Government Spending ◽  
Public Spending ◽  
Total Expenditure ◽  
Government Budget ◽  
Italian Regions ◽  
The Government ◽  
Local Government Budget

Abstract This paper focuses on the issue of the electoral and ideological cycles in local government budget for the Italian regions over the period 1996-2006. We verify these hypotheses for the following budgetary variables: total expenditures, administration, health, housing, culture and education, viability and transport and social services. The effect of the upcoming election on the government spending inclinations turns out to be relevant only for total expenditure. The ideology does not play a systematic role in spending decisions (with the exception of health) while sharing a common ideology between the national and regional governments affects public spending.

scholarly journals Deficit Financing and Economic Growth in Nigeria: 1987-2017

2019 ◽  
pp. 1-13
Author(s):  
John Okachukwu Okah ◽  
Kenechukwu Origin Chukwu ◽  
Amalachukwu Chijindu Ananwude
Keyword(s):  
Economic Growth ◽  
Crude Oil ◽  
Structural Adjustment ◽  
International Market ◽  
Government Revenue ◽  
Adjustment Programme ◽  
Vector Autoregressive ◽  
Deficit Financing ◽  
The Government ◽  
High Level

The debt profile of the Government of Nigeria has been on the increase from 1986; climaxing during the worst recession Nigeria economy has entered into after the structural adjustment programme (SAP). With the reduction in government revenue occasioned by the fluctuations of price of crude oil in the international market and absolute recklessness on the part of successive government, the government has no option than to borrow to fund its day to day activities.  This study examined the effect of deficit financing on economic growth of Nigeria from 1987 to 2017. Vector Autoregressive Estimates was used in estimating the model.  The analysis performed revealed that deficit financing has positive but insignificant effect on Nigerian economic growth. We recommended that government should strive to diversify its revenue base and also demonstrate a high level of transparency in both its monetary and fiscal operations among others.

scholarly journals ANALISIS PENGARUH BELANJA PEMERINTAH, TENAGA KERJA, DAN PENDAPATAN ASLI DAERAH TERHADAP PERTUMBUHAN EKONOMI REGIONAL PROVINSI JAWA TIMUR TAHUN 2010-2015

2017 ◽  
Vol 15 (1) ◽  
pp. 71
Author(s):  
Avicenna S Hidayat ◽  
Frederic Winston Nalle
Keyword(s):  
Economic Growth ◽  
Local Government ◽  
Government Spending ◽  
Panel Data Analysis ◽  
Government Expenditure ◽  
Regional Economic Growth ◽  
Government Revenue ◽  
Regional Economic ◽  
The Government ◽  
Regional Product

Regional economic growth is expressed in the Gross Domestic Regional Product is a good indicator in analyzing the economic conditions of a region. East Java is a province with high regional economic growth. This is supported by adequate government spending, labor, and local revenue. In terms of government expenditure that always experienced increase, indicating more activities financed by the government budget so that the expected multiplier effect is also greater. On the other side of the labor force, East Java has great potential, 19, 36 million people by 2015. Finally, in terms of Original Local Government Revenue, in 2015 the percentage of realization of Original Local Government Revenue East Java is even able to exceed the percentage of realization of state revenues derived from taxes. This study aims to determine the effect of government spending, labor, and Original Local Government Revenue  on regional economic growth in 38 districts / cities in the Province of East Java period 2010-2015. Using panel data analysis, it was found that government spending, labor, and Original Local Government Revenue variables were positively and significantly influenced regional economic growth.

scholarly journals Assessing the Role of Sentiment in the Propagation of Fiscal Stimulus

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Bijie Jia ◽  
Hyeongwoo Kim ◽  
Shuwei Zhang
Keyword(s):  
Fiscal Policy ◽  
Government Spending ◽  
Fiscal Stimulus ◽  
Vector Autoregressive ◽  
Private Activity ◽  
State Dependent ◽  
Private Spending ◽  
The Government ◽  
Post War

Abstract This paper studies the dynamic effects of the fiscal policy shock on private activity using an array of vector autoregressive models for the post-war U.S. data. We are particularly interested in the role of consumer sentiment in the transmission of fiscal stimulus. Our major findings are as follows. Private spending fails to rise persistently in response to government spending shocks, while they exhibit persistent and significant increases when the sentiment shock occurs. Employing not only linear but also nonlinear state-dependent VAR model estimations, we show that the government spending shock generates consumer pessimism in all phases of business cycle resulting in subsequent decreases in private activity, which ultimately weakens the effectiveness of the fiscal policy. Our counterfactual simulation exercises confirm the important role of sentiment in propagating fiscal stimulus to private spending.

scholarly journals Chile Fiscal Policy Management

2013 ◽  
Vol 16 (2) ◽  
pp. 45-62
Author(s):  
Ryszard Piasecki ◽  
Erico Wulf Betancourt
Keyword(s):  
Fiscal Policy ◽  
Public Debt ◽  
Budget Deficit ◽  
Budget Deficits ◽  
Policy Management ◽  
Total Revenue ◽  
The Public ◽  
The Government ◽  
Budget Surplus

A budget surplus arises in a country when the total revenue earnings surpass expenditures in a particular financial year. Having a budget surplus is very important in the sense that it brings about a decrease in the net public debt, while the public debt is increased in the event of a budget deficit. Both budget deficits and budget surpluses also exert indirect influences on taxpayers. Normally, it is not essential on the part of the government to maintain a budget surplus, though it needs to be very careful when running a budget deficit to have the proper buffer.  

scholarly journals State-dependent effects of fiscal policy

2015 ◽  
Vol 19 (3) ◽  
Author(s):  
Steven M. Fazzari ◽  
James Morley ◽  
Irina Panovska
Keyword(s):  
Fiscal Policy ◽  
Government Spending ◽  
Model Comparison ◽  
Capacity Utilization ◽  
Threshold Level ◽  
Response Analysis ◽  
Vector Autoregressive ◽  
Bayesian Model Comparison ◽  
State Dependent ◽  
The Government

AbstractWe investigate the effects of government spending on US output with a threshold structural vector autoregressive model. We consider Bayesian model comparison and generalized impulse response analysis to test for nonlinearities in the responses of output to government spending. Our empirical findings support state-dependent effects of fiscal policy, with the government spending multiplier larger and more persistent whenever there is considerable economic slack. Based on capacity utilization as the preferred threshold variable, the estimated multiplier is large (1.6) for a low-utilization regime that accounts for more than half of the sample observations from 1967 to 2012 according to the estimated threshold level.

scholarly journals Bayesian Regression of Government Expenditure on Revenue in Nigeria

2021 ◽  
pp. 21-37
Author(s):  
Olawale Basheer Akanbi
Keyword(s):  
Standard Deviation ◽  
Government Expenditure ◽  
Bayesian Regression ◽  
Total Expenditure ◽  
Total Revenue ◽  
Regression Parameters ◽  
Bayesian Linear Regression ◽  
The Government ◽  
The Relationship ◽  
Normal Gamma Prior

The relationship between government expenditure and its revenue is generating serious debate among researchers. Similarly, their has been a controversy between the classical and the bayesian modelling. Therfore, this study examined the relationship between the government expenditure and its revenue in Nigeria using the bayesian approach. The finance data extracted from the Central Bank of Nigeria statistical bulletin from 1989 to 2018 were considered for the study. Bayesian linear regression was used to fit the model. Normal distribution was fit for the likelihood. Thus, normal-gamma prior was elicited for the bayesian regression parameters. The result showed that the Bayesian estimates with elicited normal-gamma prior produced a better posterior mean of 0.536 for the Total Revenue with a smaller posterior standard deviation of 0.00001 when compared with the OLS standard deviation of 0.05256. Similarly, the total revenue explained 78% variations in the Total expenditure. The constructed model fit was: Total Expenditure = 98.57128 + 0.53630* Total Revenue. This showed that a naira unit of the total expenditure will always be increased by 0.54 of the total revenue. Forecast of 30 years for the total expenditure using both OLS and Bayesian (normal gamma prior) were increasing as the years were progressing. Government should look for a way to increase its revenue in order to sustain the future expenses of the government since expenditure increases yearly.

scholarly journals On the Fiscal Policy in Malaysia: An Econometrical Analysis Between the Revenue – and Expenditure

2020 ◽  
Vol 11 (1) ◽  
pp. 1
Author(s):  
Marco Mele ◽  
Angelo Quarto ◽  
Cristiana Abbafati
Keyword(s):  
Government Spending ◽  
Public Expenditure ◽  
Annual Data ◽  
Government Revenue ◽  
Fiscal Policies ◽  
Budget Deficits ◽  
Causality Tests ◽  
Granger Causality Tests ◽  
Tax Hypothesis ◽  
The Relationship

This study aims to assess the relationship between government spending and government revenue in Malaysia. The study of the causal relationship between revenue and public expenditure has important implications for the choices of fiscal policies in the field of public finances. So, this study uses annual data for the period between 1985 - 2016 with Zivot and Andrews (1992) methods and Granger causality tests. Our results sustain the spend-and-tax hypothesis highlights how the increase in tax pressure is the wrong method to contain budget deficits. In fact, in addition to reducing the disposable income of households, a tax policy of this type would reduce savings. Therefore, also the investment. All this would hurt Malaysia’s economic growth.

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